Correlation Between Praxis Home and Jubilant Foodworks
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By analyzing existing cross correlation between Praxis Home Retail and Jubilant Foodworks Limited, you can compare the effects of market volatilities on Praxis Home and Jubilant Foodworks 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 Jubilant Foodworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Jubilant Foodworks.
Diversification Opportunities for Praxis Home and Jubilant Foodworks
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Praxis and Jubilant is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Jubilant Foodworks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jubilant Foodworks 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 Jubilant Foodworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jubilant Foodworks has no effect on the direction of Praxis Home i.e., Praxis Home and Jubilant Foodworks go up and down completely randomly.
Pair Corralation between Praxis Home and Jubilant Foodworks
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the Jubilant Foodworks. In addition to that, Praxis Home is 1.26 times more volatile than Jubilant Foodworks Limited. It trades about -0.2 of its total potential returns per unit of risk. Jubilant Foodworks Limited is currently generating about 0.14 per unit of volatility. If you would invest 57,755 in Jubilant Foodworks Limited on November 1, 2024 and sell it today you would earn a total of 11,140 from holding Jubilant Foodworks Limited or generate 19.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Home Retail vs. Jubilant Foodworks Limited
Performance |
| Timeline |
| Praxis Home Retail |
| Jubilant Foodworks |
Praxis Home and Jubilant Foodworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Jubilant Foodworks
The main advantage of trading using opposite Praxis Home and Jubilant Foodworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Jubilant Foodworks 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 Jubilant Foodworks will offset losses from the drop in Jubilant Foodworks' long position.| Praxis Home vs. LT Technology Services | Praxis Home vs. Sasken Technologies Limited | Praxis Home vs. Newgen Software Technologies | Praxis Home vs. Taj GVK Hotels |
| Jubilant Foodworks vs. Varun Beverages Limited | Jubilant Foodworks vs. ADF Foods Limited | Jubilant Foodworks vs. Mahamaya Steel Industries | Jubilant Foodworks vs. STEEL EXCHANGE INDIA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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