Correlation Between Praxis Home and Taj GVK
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By analyzing existing cross correlation between Praxis Home Retail and Taj GVK Hotels, you can compare the effects of market volatilities on Praxis Home and Taj GVK 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 Taj GVK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Taj GVK.
Diversification Opportunities for Praxis Home and Taj GVK
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Praxis and Taj is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Taj GVK Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taj GVK Hotels 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 Taj GVK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taj GVK Hotels has no effect on the direction of Praxis Home i.e., Praxis Home and Taj GVK go up and down completely randomly.
Pair Corralation between Praxis Home and Taj GVK
Assuming the 90 days trading horizon Praxis Home is expected to generate 14.97 times less return on investment than Taj GVK. In addition to that, Praxis Home is 1.26 times more volatile than Taj GVK Hotels. It trades about 0.0 of its total potential returns per unit of risk. Taj GVK Hotels is currently generating about 0.06 per unit of volatility. If you would invest 20,084 in Taj GVK Hotels on October 16, 2024 and sell it today you would earn a total of 17,031 from holding Taj GVK Hotels or generate 84.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Praxis Home Retail vs. Taj GVK Hotels
Performance |
| Timeline |
| Praxis Home Retail |
| Taj GVK Hotels |
Praxis Home and Taj GVK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Taj GVK
The main advantage of trading using opposite Praxis Home and Taj GVK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Taj GVK 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 Taj GVK will offset losses from the drop in Taj GVK's long position.| Praxis Home vs. Parag Milk Foods | Praxis Home vs. G Tec Jainx Education | Praxis Home vs. UTI Asset Management | Praxis Home vs. Indian Card Clothing |
| Taj GVK vs. Cholamandalam Investment and | Taj GVK vs. Praxis Home Retail | Taj GVK vs. Reliance Home Finance | Taj GVK vs. Jindal Poly Investment |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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