Correlation Between Baazar Style and Praxis Home
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By analyzing existing cross correlation between Baazar Style Retail and Praxis Home Retail, you can compare the effects of market volatilities on Baazar Style 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 Baazar Style with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baazar Style and Praxis Home.
Diversification Opportunities for Baazar Style and Praxis Home
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baazar and Praxis is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Baazar Style Retail 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 Baazar Style 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 Baazar Style Retail 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 Baazar Style i.e., Baazar Style and Praxis Home go up and down completely randomly.
Pair Corralation between Baazar Style and Praxis Home
Assuming the 90 days trading horizon Baazar Style Retail is expected to generate 1.19 times more return on investment than Praxis Home. However, Baazar Style is 1.19 times more volatile than Praxis Home Retail. It trades about 0.02 of its potential returns per unit of risk. Praxis Home Retail is currently generating about -0.14 per unit of risk. If you would invest 31,775 in Baazar Style Retail on October 26, 2024 and sell it today you would earn a total of 365.00 from holding Baazar Style Retail or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baazar Style Retail vs. Praxis Home Retail
Performance |
| Timeline |
| Baazar Style Retail |
| Praxis Home Retail |
Baazar Style and Praxis Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baazar Style and Praxis Home
The main advantage of trading using opposite Baazar Style and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baazar Style 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.| Baazar Style vs. Trent Limited | Baazar Style vs. V2 Retail Limited | Baazar Style vs. Credo Brands Marketing | Baazar Style vs. Taj GVK Hotels |
| Praxis Home vs. Kingfa Science Technology | Praxis Home vs. Rico Auto Industries | Praxis Home vs. GACM Technologies Limited | Praxis Home vs. COSMO FIRST LIMITED |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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