Correlation Between AUTHUM INVESTMENT and Newgen Software
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By analyzing existing cross correlation between AUTHUM INVESTMENT INFRASTRUCTU and Newgen Software Technologies, you can compare the effects of market volatilities on AUTHUM INVESTMENT and Newgen Software 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 AUTHUM INVESTMENT with a short position of Newgen Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUTHUM INVESTMENT and Newgen Software.
Diversification Opportunities for AUTHUM INVESTMENT and Newgen Software
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AUTHUM and Newgen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding AUTHUM INVESTMENT INFRASTRUCTU and Newgen Software Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newgen Software Tech and AUTHUM INVESTMENT 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 AUTHUM INVESTMENT INFRASTRUCTU are associated (or correlated) with Newgen Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newgen Software Tech has no effect on the direction of AUTHUM INVESTMENT i.e., AUTHUM INVESTMENT and Newgen Software go up and down completely randomly.
Pair Corralation between AUTHUM INVESTMENT and Newgen Software
Assuming the 90 days trading horizon AUTHUM INVESTMENT INFRASTRUCTU is expected to generate 0.39 times more return on investment than Newgen Software. However, AUTHUM INVESTMENT INFRASTRUCTU is 2.59 times less risky than Newgen Software. It trades about -0.16 of its potential returns per unit of risk. Newgen Software Technologies is currently generating about -0.08 per unit of risk. If you would invest 167,885 in AUTHUM INVESTMENT INFRASTRUCTU on September 2, 2024 and sell it today you would lose (9,810) from holding AUTHUM INVESTMENT INFRASTRUCTU or give up 5.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUTHUM INVESTMENT INFRASTRUCTU vs. Newgen Software Technologies
Performance |
| Timeline |
| AUTHUM INVESTMENT |
| Newgen Software Tech |
AUTHUM INVESTMENT and Newgen Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUTHUM INVESTMENT and Newgen Software
The main advantage of trading using opposite AUTHUM INVESTMENT and Newgen Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUTHUM INVESTMENT position performs unexpectedly, Newgen Software 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 Newgen Software will offset losses from the drop in Newgen Software's long position.| AUTHUM INVESTMENT vs. Motilal Oswal Financial | AUTHUM INVESTMENT vs. Tata Investment | AUTHUM INVESTMENT vs. Indian Energy Exchange | AUTHUM INVESTMENT vs. JM Financial Limited |
| Newgen Software vs. Gujarat Lease Financing | Newgen Software vs. The Hi Tech Gears | Newgen Software vs. UFO Moviez India | Newgen Software vs. Hemisphere Properties India |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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