Correlation Between Praxis Home and Zomato
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By analyzing existing cross correlation between Praxis Home Retail and Zomato Limited, you can compare the effects of market volatilities on Praxis Home and Zomato 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 Zomato. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Home and Zomato.
Diversification Opportunities for Praxis Home and Zomato
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Praxis and Zomato is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Home Retail and Zomato Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zomato Limited 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 Zomato. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zomato Limited has no effect on the direction of Praxis Home i.e., Praxis Home and Zomato go up and down completely randomly.
Pair Corralation between Praxis Home and Zomato
Assuming the 90 days trading horizon Praxis Home Retail is expected to under-perform the Zomato. In addition to that, Praxis Home is 1.31 times more volatile than Zomato Limited. It trades about -0.1 of its total potential returns per unit of risk. Zomato Limited is currently generating about 0.05 per unit of volatility. If you would invest 28,005 in Zomato Limited on September 13, 2024 and sell it today you would earn a total of 1,175 from holding Zomato Limited or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Praxis Home Retail vs. Zomato Limited
Performance |
| Timeline |
| Praxis Home Retail |
| Zomato Limited |
Praxis Home and Zomato Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Praxis Home and Zomato
The main advantage of trading using opposite Praxis Home and Zomato positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Home position performs unexpectedly, Zomato 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 Zomato will offset losses from the drop in Zomato's long position.| Praxis Home vs. Reliance Industries Limited | Praxis Home vs. Tata Consultancy Services | Praxis Home vs. HDFC Bank Limited | Praxis Home vs. Bharti Airtel Limited |
| Zomato vs. Avonmore Capital Management | Zomato vs. Neogen Chemicals Limited | Zomato vs. Praxis Home Retail | Zomato vs. EMBASSY OFFICE PARKS |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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