Correlation Between Praxis Home and Tree House
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By analyzing existing cross correlation between Praxis Home Retail and Tree House Education, you can compare the effects of market volatilities on Praxis Home and Tree House 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 Tree House. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Tree House.
Diversification Opportunities for Praxis Home and Tree House
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Praxis and Tree is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Tree House Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tree House Education 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 Tree House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tree House Education has no effect on the direction of Praxis Home i.e., Praxis Home and Tree House go up and down completely randomly.
Pair Corralation between Praxis Home and Tree House
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the Tree House. In addition to that, Praxis Home is 1.11 times more volatile than Tree House Education. It trades about 0.0 of its total potential returns per unit of risk. Tree House Education is currently generating about 0.0 per unit of volatility. If you would invest 2,000 in Tree House Education on September 5, 2024 and sell it today you would lose (332.00) from holding Tree House Education or give up 16.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Praxis Home Retail vs. Tree House Education
Performance |
| Timeline |
| Praxis Home Retail |
| Tree House Education |
Praxis Home and Tree House Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Tree House
The main advantage of trading using opposite Praxis Home and Tree House positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Tree House 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 Tree House will offset losses from the drop in Tree House's long position.| Praxis Home vs. Reliance Communications Limited | Praxis Home vs. California Software | Praxis Home vs. LT Technology Services | Praxis Home vs. Sonata Software Limited |
| Tree House vs. HMT Limited | Tree House vs. KIOCL Limited | Tree House vs. Spentex Industries Limited | Tree House vs. Punjab Sind Bank |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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