Correlation Between Praxis Home and Kotak Mahindra
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By analyzing existing cross correlation between Praxis Home Retail and Kotak Mahindra Bank, you can compare the effects of market volatilities on Praxis Home and Kotak Mahindra 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 Kotak Mahindra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Kotak Mahindra.
Diversification Opportunities for Praxis Home and Kotak Mahindra
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Praxis and Kotak is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Kotak Mahindra Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kotak Mahindra Bank 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 Kotak Mahindra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kotak Mahindra Bank has no effect on the direction of Praxis Home i.e., Praxis Home and Kotak Mahindra go up and down completely randomly.
Pair Corralation between Praxis Home and Kotak Mahindra
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the Kotak Mahindra. In addition to that, Praxis Home is 1.45 times more volatile than Kotak Mahindra Bank. It trades about -0.14 of its total potential returns per unit of risk. Kotak Mahindra Bank is currently generating about 0.08 per unit of volatility. If you would invest 179,200 in Kotak Mahindra Bank on October 26, 2024 and sell it today you would earn a total of 10,285 from holding Kotak Mahindra Bank or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Home Retail vs. Kotak Mahindra Bank
Performance |
| Timeline |
| Praxis Home Retail |
| Kotak Mahindra Bank |
Praxis Home and Kotak Mahindra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Kotak Mahindra
The main advantage of trading using opposite Praxis Home and Kotak Mahindra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Kotak Mahindra 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 Kotak Mahindra will offset losses from the drop in Kotak Mahindra's long position.| Praxis Home vs. Kingfa Science Technology | Praxis Home vs. Rico Auto Industries | Praxis Home vs. GACM Technologies Limited | Praxis Home vs. COSMO FIRST LIMITED |
| Kotak Mahindra vs. Hybrid Financial Services | Kotak Mahindra vs. Unitech Limited | Kotak Mahindra vs. Goldstone Technologies Limited | Kotak Mahindra vs. 63 moons technologies |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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