Correlation Between Praxis Home and Refex Industries
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By analyzing existing cross correlation between Praxis Home Retail and Refex Industries Limited, you can compare the effects of market volatilities on Praxis Home and Refex Industries 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 Refex Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Refex Industries.
Diversification Opportunities for Praxis Home and Refex Industries
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Praxis and Refex is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Refex Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Refex Industries 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 Refex Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Refex Industries has no effect on the direction of Praxis Home i.e., Praxis Home and Refex Industries go up and down completely randomly.
Pair Corralation between Praxis Home and Refex Industries
Assuming the 90 days trading horizon Praxis Home Retail is expected to generate 1.47 times more return on investment than Refex Industries. However, Praxis Home is 1.47 times more volatile than Refex Industries Limited. It trades about 0.07 of its potential returns per unit of risk. Refex Industries Limited is currently generating about -0.19 per unit of risk. If you would invest 2,164 in Praxis Home Retail on October 11, 2024 and sell it today you would earn a total of 76.00 from holding Praxis Home Retail or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Home Retail vs. Refex Industries Limited
Performance |
| Timeline |
| Praxis Home Retail |
| Refex Industries |
Praxis Home and Refex Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Refex Industries
The main advantage of trading using opposite Praxis Home and Refex Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Refex Industries 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 Refex Industries will offset losses from the drop in Refex Industries' long position.| Praxis Home vs. One 97 Communications | Praxis Home vs. Viceroy Hotels Limited | Praxis Home vs. Tata Communications Limited | Praxis Home vs. Chalet Hotels Limited |
| Refex Industries vs. Praxis Home Retail | Refex Industries vs. Gujarat Lease Financing | Refex Industries vs. Baazar Style Retail | Refex Industries vs. V2 Retail 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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