Correlation Between Sandhar Technologies and Praxis Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sandhar Technologies Limited and Praxis Home Retail, you can compare the effects of market volatilities on Sandhar Technologies 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 Sandhar Technologies with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandhar Technologies and Praxis Home.
Diversification Opportunities for Sandhar Technologies and Praxis Home
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sandhar and Praxis is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sandhar Technologies Limited 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 Sandhar Technologies 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 Sandhar Technologies Limited 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 Sandhar Technologies i.e., Sandhar Technologies and Praxis Home go up and down completely randomly.
Pair Corralation between Sandhar Technologies and Praxis Home
Assuming the 90 days trading horizon Sandhar Technologies Limited is expected to under-perform the Praxis Home. But the stock apears to be less risky and, when comparing its historical volatility, Sandhar Technologies Limited is 1.22 times less risky than Praxis Home. The stock trades about -0.1 of its potential returns per unit of risk. The Praxis Home Retail is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,489 in Praxis Home Retail on October 30, 2024 and sell it today you would earn a total of 331.00 from holding Praxis Home Retail or generate 22.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sandhar Technologies Limited vs. Praxis Home Retail
Performance |
| Timeline |
| Sandhar Technologies |
| Praxis Home Retail |
Sandhar Technologies and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandhar Technologies and Praxis Home
The main advantage of trading using opposite Sandhar Technologies and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandhar Technologies 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.| Sandhar Technologies vs. Reliance Industries Limited | Sandhar Technologies vs. Tata Consultancy Services | Sandhar Technologies vs. HDFC Bank Limited | Sandhar Technologies vs. Bharti Airtel Limited |
| Praxis Home vs. Tamilnadu Telecommunication Limited | Praxis Home vs. DMCC SPECIALITY CHEMICALS | Praxis Home vs. IOL Chemicals and | Praxis Home vs. The Hi Tech Gears |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |