Correlation Between Praxis Home and Naga Dhunseri
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By analyzing existing cross correlation between Praxis Home Retail and Naga Dhunseri Group, you can compare the effects of market volatilities on Praxis Home and Naga Dhunseri 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 Naga Dhunseri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Naga Dhunseri.
Diversification Opportunities for Praxis Home and Naga Dhunseri
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Praxis and Naga is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Naga Dhunseri Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naga Dhunseri Group 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 Naga Dhunseri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naga Dhunseri Group has no effect on the direction of Praxis Home i.e., Praxis Home and Naga Dhunseri go up and down completely randomly.
Pair Corralation between Praxis Home and Naga Dhunseri
Assuming the 90 days trading horizon Praxis Home is expected to generate 2.27 times less return on investment than Naga Dhunseri. But when comparing it to its historical volatility, Praxis Home Retail is 1.18 times less risky than Naga Dhunseri. It trades about 0.03 of its potential returns per unit of risk. Naga Dhunseri Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 301,195 in Naga Dhunseri Group on November 3, 2024 and sell it today you would earn a total of 46,305 from holding Naga Dhunseri Group or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Praxis Home Retail vs. Naga Dhunseri Group
Performance |
| Timeline |
| Praxis Home Retail |
| Naga Dhunseri Group |
Praxis Home and Naga Dhunseri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Naga Dhunseri
The main advantage of trading using opposite Praxis Home and Naga Dhunseri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Naga Dhunseri 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 Naga Dhunseri will offset losses from the drop in Naga Dhunseri'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 |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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