Correlation Between Praxis Home and NIFTY SUMER
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By analyzing existing cross correlation between Praxis Home Retail and NIFTY SUMER DURABLES, you can compare the effects of market volatilities on Praxis Home and NIFTY SUMER 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 NIFTY SUMER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and NIFTY SUMER.
Diversification Opportunities for Praxis Home and NIFTY SUMER
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Praxis and NIFTY is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and NIFTY SUMER DURABLES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIFTY SUMER DURABLES 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 NIFTY SUMER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIFTY SUMER DURABLES has no effect on the direction of Praxis Home i.e., Praxis Home and NIFTY SUMER go up and down completely randomly.
Pair Corralation between Praxis Home and NIFTY SUMER
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the NIFTY SUMER. In addition to that, Praxis Home is 3.23 times more volatile than NIFTY SUMER DURABLES. It trades about -0.18 of its total potential returns per unit of risk. NIFTY SUMER DURABLES is currently generating about 0.24 per unit of volatility. If you would invest 3,913,710 in NIFTY SUMER DURABLES on September 5, 2024 and sell it today you would earn a total of 206,130 from holding NIFTY SUMER DURABLES or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Praxis Home Retail vs. NIFTY SUMER DURABLES
Performance |
| Timeline |
Praxis Home and NIFTY SUMER Volatility Contrast
Predicted Return Density |
| Returns |
Praxis Home Retail
Pair trading matchups for Praxis Home
NIFTY SUMER DURABLES
Pair trading matchups for NIFTY SUMER
Pair Trading with Praxis Home and NIFTY SUMER
The main advantage of trading using opposite Praxis Home and NIFTY SUMER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, NIFTY SUMER 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 NIFTY SUMER will offset losses from the drop in NIFTY SUMER's long position.| Praxis Home vs. Reliance Communications Limited | Praxis Home vs. California Software | Praxis Home vs. LT Technology Services | Praxis Home vs. Sonata Software Limited |
| NIFTY SUMER vs. UFO Moviez India | NIFTY SUMER vs. V2 Retail Limited | NIFTY SUMER vs. Varun Beverages Limited | NIFTY SUMER vs. Praxis Home Retail |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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