Correlation Between Praxis Home and Home First
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By analyzing existing cross correlation between Praxis Home Retail and Home First Finance, you can compare the effects of market volatilities on Praxis Home and Home First and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Praxis Home with a short position of Home First. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Home First.
Diversification Opportunities for Praxis Home and Home First
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Praxis and Home is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Home First Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home First Finance and Praxis Home is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Praxis Home Retail are associated (or correlated) with Home First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home First Finance has no effect on the direction of Praxis Home i.e., Praxis Home and Home First go up and down completely randomly.
Pair Corralation between Praxis Home and Home First
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the Home First. In addition to that, Praxis Home is 1.54 times more volatile than Home First Finance. It trades about -0.1 of its total potential returns per unit of risk. Home First Finance is currently generating about 0.04 per unit of volatility. If you would invest 102,795 in Home First Finance on September 14, 2024 and sell it today you would earn a total of 1,215 from holding Home First Finance or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Home Retail vs. Home First Finance
Performance |
| Timeline |
| Praxis Home Retail |
| Home First Finance |
Praxis Home and Home First Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Home First
The main advantage of trading using opposite Praxis Home and Home First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Home First can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Home First will offset losses from the drop in Home First's long position.| Praxis Home vs. Reliance Industries Limited | Praxis Home vs. Tata Consultancy Services | Praxis Home vs. HDFC Bank Limited | Praxis Home vs. Bharti Airtel Limited |
| Home First vs. Sarthak Metals Limited | Home First vs. Manaksia Coated Metals | Home First vs. Hindustan Media Ventures | Home First vs. Indian Metals Ferro |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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