Correlation Between Praxis Home and Le Travenues
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By analyzing existing cross correlation between Praxis Home Retail and Le Travenues Technology, you can compare the effects of market volatilities on Praxis Home and Le Travenues 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 Le Travenues. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Le Travenues.
Diversification Opportunities for Praxis Home and Le Travenues
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Praxis and IXIGO is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Le Travenues Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Le Travenues Technology 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 Le Travenues. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Le Travenues Technology has no effect on the direction of Praxis Home i.e., Praxis Home and Le Travenues go up and down completely randomly.
Pair Corralation between Praxis Home and Le Travenues
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the Le Travenues. But the stock apears to be less risky and, when comparing its historical volatility, Praxis Home Retail is 1.0 times less risky than Le Travenues. The stock trades about -0.15 of its potential returns per unit of risk. The Le Travenues Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 14,387 in Le Travenues Technology on October 25, 2024 and sell it today you would lose (481.00) from holding Le Travenues Technology or give up 3.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Praxis Home Retail vs. Le Travenues Technology
Performance |
| Timeline |
| Praxis Home Retail |
| Le Travenues Technology |
Praxis Home and Le Travenues Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Le Travenues
The main advantage of trading using opposite Praxis Home and Le Travenues positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Le Travenues 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 Le Travenues will offset losses from the drop in Le Travenues' long position.| Praxis Home vs. Reliance Industries Limited | Praxis Home vs. HDFC Bank Limited | Praxis Home vs. Bharti Airtel Limited | Praxis Home vs. State Bank of |
| Le Travenues vs. Easy Trip Planners | Le Travenues vs. Yatra Online Limited | Le Travenues vs. Indo Borax Chemicals | Le Travenues vs. Kingfa Science Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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