Correlation Between Praxis Home and Yatharth Hospital
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By analyzing existing cross correlation between Praxis Home Retail and Yatharth Hospital Trauma, you can compare the effects of market volatilities on Praxis Home and Yatharth Hospital 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 Yatharth Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Yatharth Hospital.
Diversification Opportunities for Praxis Home and Yatharth Hospital
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Praxis and Yatharth is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Yatharth Hospital Trauma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatharth Hospital Trauma 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 Yatharth Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yatharth Hospital Trauma has no effect on the direction of Praxis Home i.e., Praxis Home and Yatharth Hospital go up and down completely randomly.
Pair Corralation between Praxis Home and Yatharth Hospital
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the Yatharth Hospital. In addition to that, Praxis Home is 1.47 times more volatile than Yatharth Hospital Trauma. It trades about -0.23 of its total potential returns per unit of risk. Yatharth Hospital Trauma is currently generating about -0.32 per unit of volatility. If you would invest 68,595 in Yatharth Hospital Trauma on September 3, 2024 and sell it today you would lose (9,130) from holding Yatharth Hospital Trauma or give up 13.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Home Retail vs. Yatharth Hospital Trauma
Performance |
| Timeline |
| Praxis Home Retail |
| Yatharth Hospital Trauma |
Praxis Home and Yatharth Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Yatharth Hospital
The main advantage of trading using opposite Praxis Home and Yatharth Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Yatharth Hospital 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 Yatharth Hospital will offset losses from the drop in Yatharth Hospital's long position.| Praxis Home vs. Bajaj Holdings Investment | Praxis Home vs. Shipping | Praxis Home vs. Indo Borax Chemicals | Praxis Home vs. Kingfa Science Technology |
| Yatharth Hospital vs. Sri Havisha Hospitality | Yatharth Hospital vs. Aster DM Healthcare | Yatharth Hospital vs. Gallantt Ispat Limited | Yatharth Hospital vs. Computer Age Management |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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