Correlation Between Praxis Home and Kingfa Science
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By analyzing existing cross correlation between Praxis Home Retail and Kingfa Science Technology, you can compare the effects of market volatilities on Praxis Home and Kingfa Science 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 Kingfa Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Kingfa Science.
Diversification Opportunities for Praxis Home and Kingfa Science
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Praxis and Kingfa is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Kingfa Science Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingfa Science 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 Kingfa Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingfa Science Technology has no effect on the direction of Praxis Home i.e., Praxis Home and Kingfa Science go up and down completely randomly.
Pair Corralation between Praxis Home and Kingfa Science
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the Kingfa Science. But the stock apears to be less risky and, when comparing its historical volatility, Praxis Home Retail is 1.7 times less risky than Kingfa Science. The stock trades about -0.16 of its potential returns per unit of risk. The Kingfa Science Technology is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 343,500 in Kingfa Science Technology on November 3, 2024 and sell it today you would lose (17,880) from holding Kingfa Science Technology or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Home Retail vs. Kingfa Science Technology
Performance |
| Timeline |
| Praxis Home Retail |
| Kingfa Science Technology |
Praxis Home and Kingfa Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Kingfa Science
The main advantage of trading using opposite Praxis Home and Kingfa Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Kingfa Science 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 Kingfa Science will offset losses from the drop in Kingfa Science's long position.| Praxis Home vs. Cambridge Technology Enterprises | Praxis Home vs. Nazara Technologies Limited | Praxis Home vs. TECIL Chemicals and | Praxis Home vs. Fertilizers and Chemicals |
| Kingfa Science vs. Vardhman Special Steels | Kingfa Science vs. Action Construction Equipment | Kingfa Science vs. Man Infraconstruction Limited | Kingfa Science vs. Rama Steel Tubes |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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