Correlation Between Praxis Home and Spencers Retail
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By analyzing existing cross correlation between Praxis Home Retail and Spencers Retail Limited, you can compare the effects of market volatilities on Praxis Home and Spencers Retail 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 Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Spencers Retail.
Diversification Opportunities for Praxis Home and Spencers Retail
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Praxis and Spencers is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Spencers Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spencers Retail 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 Spencers Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spencers Retail has no effect on the direction of Praxis Home i.e., Praxis Home and Spencers Retail go up and down completely randomly.
Pair Corralation between Praxis Home and Spencers Retail
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the Spencers Retail. In addition to that, Praxis Home is 1.48 times more volatile than Spencers Retail Limited. It trades about -0.2 of its total potential returns per unit of risk. Spencers Retail Limited is currently generating about -0.2 per unit of volatility. If you would invest 9,391 in Spencers Retail Limited on September 1, 2024 and sell it today you would lose (834.00) from holding Spencers Retail Limited or give up 8.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Home Retail vs. Spencers Retail Limited
Performance |
| Timeline |
| Praxis Home Retail |
| Spencers Retail |
Praxis Home and Spencers Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Spencers Retail
The main advantage of trading using opposite Praxis Home and Spencers Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Spencers Retail 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 Spencers Retail will offset losses from the drop in Spencers Retail's long position.| Praxis Home vs. Reliance Industries Limited | Praxis Home vs. Tata Consultancy Services | Praxis Home vs. HDFC Bank Limited | Praxis Home vs. Kingfa Science Technology |
| Spencers Retail vs. Avonmore Capital Management | Spencers Retail vs. Computer Age Management | Spencers Retail vs. Reliance Communications Limited | Spencers Retail vs. Bikaji Foods International |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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