Correlation Between Praxis Home and Power Finance
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By analyzing existing cross correlation between Praxis Home Retail and Power Finance, you can compare the effects of market volatilities on Praxis Home and Power Finance 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 Power Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Power Finance.
Diversification Opportunities for Praxis Home and Power Finance
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Praxis and Power is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Power Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Finance 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 Power Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Finance has no effect on the direction of Praxis Home i.e., Praxis Home and Power Finance go up and down completely randomly.
Pair Corralation between Praxis Home and Power Finance
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the Power Finance. But the stock apears to be less risky and, when comparing its historical volatility, Praxis Home Retail is 1.06 times less risky than Power Finance. The stock trades about 0.0 of its potential returns per unit of risk. The Power Finance is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 10,610 in Power Finance on November 1, 2024 and sell it today you would earn a total of 29,300 from holding Power Finance or generate 276.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Praxis Home Retail vs. Power Finance
Performance |
| Timeline |
| Praxis Home Retail |
| Power Finance |
Praxis Home and Power Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Power Finance
The main advantage of trading using opposite Praxis Home and Power Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Power Finance 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 Power Finance will offset losses from the drop in Power Finance's long position.| Praxis Home vs. Next Mediaworks Limited | Praxis Home vs. Silly Monks Entertainment | Praxis Home vs. Radaan Mediaworks India | Praxis Home vs. Entertainment Network Limited |
| Power Finance vs. GM Breweries Limited | Power Finance vs. Hemisphere Properties India | Power Finance vs. KNR Constructions Limited | Power Finance vs. Gallantt Ispat 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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