Correlation Between Praxis Home and MRF
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By analyzing existing cross correlation between Praxis Home Retail and MRF Limited, you can compare the effects of market volatilities on Praxis Home and MRF 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 MRF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and MRF.
Diversification Opportunities for Praxis Home and MRF
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Praxis and MRF is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and MRF Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRF Limited 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 MRF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRF Limited has no effect on the direction of Praxis Home i.e., Praxis Home and MRF go up and down completely randomly.
Pair Corralation between Praxis Home and MRF
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the MRF. In addition to that, Praxis Home is 2.79 times more volatile than MRF Limited. It trades about -0.32 of its total potential returns per unit of risk. MRF Limited is currently generating about 0.39 per unit of volatility. If you would invest 10,541,100 in MRF Limited on January 14, 2025 and sell it today you would earn a total of 1,213,300 from holding MRF Limited or generate 11.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Home Retail vs. MRF Limited
Performance |
| Timeline |
| Praxis Home Retail |
| MRF Limited |
Praxis Home and MRF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and MRF
The main advantage of trading using opposite Praxis Home and MRF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, MRF 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 MRF will offset losses from the drop in MRF's long position.| Praxis Home vs. Asian Hotels Limited | Praxis Home vs. Hisar Metal Industries | Praxis Home vs. Teamlease Services Limited | Praxis Home vs. ITCHOTELS |
| MRF vs. Dev Information Technology | MRF vs. Ortel Communications Limited | MRF vs. The Hi Tech Gears | MRF vs. Le Travenues 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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