Correlation Between DCM Financial and Praxis Home
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By analyzing existing cross correlation between DCM Financial Services and Praxis Home Retail, you can compare the effects of market volatilities on DCM Financial 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 DCM Financial with a short position of Praxis Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of DCM Financial and Praxis Home.
Diversification Opportunities for DCM Financial and Praxis Home
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between DCM and Praxis is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding DCM Financial Services 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 DCM Financial 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 DCM Financial Services 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 DCM Financial i.e., DCM Financial and Praxis Home go up and down completely randomly.
Pair Corralation between DCM Financial and Praxis Home
Assuming the 90 days trading horizon DCM Financial Services is expected to generate 1.06 times more return on investment than Praxis Home. However, DCM Financial is 1.06 times more volatile than Praxis Home Retail. It trades about 0.01 of its potential returns per unit of risk. Praxis Home Retail is currently generating about -0.15 per unit of risk. If you would invest 812.00 in DCM Financial Services on September 26, 2024 and sell it today you would lose (7.00) from holding DCM Financial Services or give up 0.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
DCM Financial Services vs. Praxis Home Retail
Performance |
Timeline |
DCM Financial Services |
Praxis Home Retail |
DCM Financial and Praxis Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DCM Financial and Praxis Home
The main advantage of trading using opposite DCM Financial and Praxis Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DCM Financial 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.DCM Financial vs. Kingfa Science Technology | ||
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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