Correlation Between Praxis Home and Lemon Tree
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By analyzing existing cross correlation between Praxis Home Retail and Lemon Tree Hotels, you can compare the effects of market volatilities on Praxis Home and Lemon Tree 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 Lemon Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Lemon Tree.
Diversification Opportunities for Praxis Home and Lemon Tree
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Praxis and Lemon is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Lemon Tree Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lemon Tree Hotels 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 Lemon Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lemon Tree Hotels has no effect on the direction of Praxis Home i.e., Praxis Home and Lemon Tree go up and down completely randomly.
Pair Corralation between Praxis Home and Lemon Tree
Assuming the 90 days trading horizon Praxis Home Retail is expected to generate 1.28 times more return on investment than Lemon Tree. However, Praxis Home is 1.28 times more volatile than Lemon Tree Hotels. It trades about 0.02 of its potential returns per unit of risk. Lemon Tree Hotels is currently generating about -0.01 per unit of risk. If you would invest 1,695 in Praxis Home Retail on November 3, 2024 and sell it today you would earn a total of 51.00 from holding Praxis Home Retail or generate 3.01% 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. Lemon Tree Hotels
Performance |
| Timeline |
| Praxis Home Retail |
| Lemon Tree Hotels |
Praxis Home and Lemon Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Lemon Tree
The main advantage of trading using opposite Praxis Home and Lemon Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Lemon Tree 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 Lemon Tree will offset losses from the drop in Lemon Tree's long position.| Praxis Home vs. AUTHUM INVESTMENT INFRASTRUCTU | Praxis Home vs. SIL Investments Limited | Praxis Home vs. Silver Touch Technologies | Praxis Home vs. Pilani Investment and |
| Lemon Tree vs. JGCHEMICALS LIMITED | Lemon Tree vs. Chembond Chemicals | Lemon Tree vs. Khaitan Chemicals Fertilizers | Lemon Tree vs. Bigbloc Construction Limited |
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 Stocks Directory module to find actively traded stocks across global markets.
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