Correlation Between Steel Authority and Praxis Home
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By analyzing existing cross correlation between Steel Authority of and Praxis Home Retail, you can compare the effects of market volatilities on Steel Authority and Praxis Home 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 Steel Authority with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Authority and Praxis Home.
Diversification Opportunities for Steel Authority and Praxis Home
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Steel and Praxis is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Steel Authority of and Praxis Home Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praxis Home Retail and Steel Authority 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 Steel Authority of are associated (or correlated) with Praxis Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praxis Home Retail has no effect on the direction of Steel Authority i.e., Steel Authority and Praxis Home go up and down completely randomly.
Pair Corralation between Steel Authority and Praxis Home
Assuming the 90 days trading horizon Steel Authority is expected to generate 1.61 times less return on investment than Praxis Home. But when comparing it to its historical volatility, Steel Authority of is 1.07 times less risky than Praxis Home. It trades about 0.05 of its potential returns per unit of risk. Praxis Home Retail is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,155 in Praxis Home Retail on August 31, 2024 and sell it today you would earn a total of 1,033 from holding Praxis Home Retail or generate 89.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steel Authority of vs. Praxis Home Retail
Performance |
| Timeline |
| Steel Authority |
| Praxis Home Retail |
Steel Authority and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Authority and Praxis Home
The main advantage of trading using opposite Steel Authority and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Authority position performs unexpectedly, Praxis Home 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 Praxis Home will offset losses from the drop in Praxis Home's long position.| Steel Authority vs. Praxis Home Retail | Steel Authority vs. Osia Hyper Retail | Steel Authority vs. Patanjali Foods Limited | Steel Authority vs. Sapphire Foods India |
| Praxis Home vs. Shyam Telecom Limited | Praxis Home vs. G Tec Jainx Education | Praxis Home vs. TVS Electronics Limited | Praxis Home vs. Tree House Education |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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