Correlation Between Praxis Genesis and Inflation-adjusted

Can any of the company-specific risk be diversified away by investing in both Praxis Genesis and Inflation-adjusted at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Praxis Genesis and Inflation-adjusted into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Praxis Genesis Balanced and Inflation Adjusted Bond Fund, you can compare the effects of market volatilities on Praxis Genesis and Inflation-adjusted 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 Genesis with a short position of Inflation-adjusted. Check out your portfolio center. Please also check ongoing floating volatility patterns of Praxis Genesis and Inflation-adjusted.

Diversification Opportunities for Praxis Genesis and Inflation-adjusted

0.95

Correlation Coefficient

Praxis Genesis  Inflation-adjusted

Almost no diversification

The 3 months correlation between Praxis and Inflation-adjusted is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Genesis Balanced and Inflation Adjusted Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Adjusted Bond and Praxis Genesis 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 Genesis Balanced are associated (or correlated) with Inflation-adjusted. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Adjusted Bond has no effect on the direction of Praxis Genesis i.e., Praxis Genesis and Inflation-adjusted go up and down completely randomly.

Pair Corralation between Praxis Genesis and Inflation-adjusted

Assuming the 90 days horizon Praxis Genesis Balanced is expected to generate 1.76 times more return on investment than Inflation-adjusted. However, Praxis Genesis is 1.76 times more volatile than Inflation Adjusted Bond Fund. It trades about 0.17 of its potential returns per unit of risk. Inflation Adjusted Bond Fund is currently generating about 0.16 per unit of risk. If you would invest  1,641  in Praxis Genesis Balanced on July 2, 2025 and sell it today you would earn a total of  66.00  from holding Praxis Genesis Balanced or generate 4.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Praxis Genesis Balanced  vs.  Inflation Adjusted Bond Fund

Praxis Genesis Balanced

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Praxis Genesis Balanced are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Praxis Genesis is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Inflation Adjusted Bond

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Inflation Adjusted Bond Fund are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Inflation-adjusted is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Praxis Genesis and Inflation-adjusted

The main advantage of trading using opposite Praxis Genesis and Inflation-adjusted positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Genesis position performs unexpectedly, Inflation-adjusted 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 Inflation-adjusted will offset losses from the drop in Inflation-adjusted's long position.

The idea behind Praxis Genesis Balanced and Inflation Adjusted Bond Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..