Correlation Between Praxis Home and State Bank
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By analyzing existing cross correlation between Praxis Home Retail and State Bank of, you can compare the effects of market volatilities on Praxis Home and State Bank 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 State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and State Bank.
Diversification Opportunities for Praxis Home and State Bank
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Praxis and State is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank 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 State Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Bank has no effect on the direction of Praxis Home i.e., Praxis Home and State Bank go up and down completely randomly.
Pair Corralation between Praxis Home and State Bank
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the State Bank. In addition to that, Praxis Home is 1.67 times more volatile than State Bank of. It trades about -0.08 of its total potential returns per unit of risk. State Bank of is currently generating about 0.14 per unit of volatility. If you would invest 79,205 in State Bank of on August 29, 2024 and sell it today you would earn a total of 4,735 from holding State Bank of or generate 5.98% 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. State Bank of
Performance |
| Timeline |
| Praxis Home Retail |
| State Bank |
Praxis Home and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and State Bank
The main advantage of trading using opposite Praxis Home and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, State Bank 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 State Bank will offset losses from the drop in State Bank's long position.| Praxis Home vs. Kaushalya Infrastructure Development | Praxis Home vs. MMTC Limited | Praxis Home vs. Kingfa Science Technology | Praxis Home vs. Rico Auto Industries |
| State Bank vs. MRF Limited | State Bank vs. JSW Holdings Limited | State Bank vs. Maharashtra Scooters Limited | State Bank vs. Nalwa Sons Investments |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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