Correlation Between Asian Hotels and Newgen Software
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By analyzing existing cross correlation between Asian Hotels Limited and Newgen Software Technologies, you can compare the effects of market volatilities on Asian Hotels 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 Asian Hotels with a short position of Newgen Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Newgen Software.
Diversification Opportunities for Asian Hotels and Newgen Software
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asian and Newgen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels Limited 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 Asian Hotels 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 Asian Hotels Limited 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 Asian Hotels i.e., Asian Hotels and Newgen Software go up and down completely randomly.
Pair Corralation between Asian Hotels and Newgen Software
Assuming the 90 days trading horizon Asian Hotels is expected to generate 2.4 times less return on investment than Newgen Software. But when comparing it to its historical volatility, Asian Hotels Limited is 1.87 times less risky than Newgen Software. It trades about 0.07 of its potential returns per unit of risk. Newgen Software Technologies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 18,622 in Newgen Software Technologies on August 24, 2024 and sell it today you would earn a total of 89,548 from holding Newgen Software Technologies or generate 480.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Asian Hotels Limited vs. Newgen Software Technologies
Performance |
| Timeline |
| Asian Hotels Limited |
| Newgen Software Tech |
Asian Hotels and Newgen Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Newgen Software
The main advantage of trading using opposite Asian Hotels and Newgen Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels 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.| Asian Hotels vs. JGCHEMICALS LIMITED | Asian Hotels vs. Dhunseri Investments Limited | Asian Hotels vs. Mangalore Chemicals Fertilizers | Asian Hotels vs. Allied Blenders Distillers |
| Newgen Software vs. Divis Laboratories Limited | Newgen Software vs. Indo Borax Chemicals | Newgen Software vs. Kingfa Science Technology | Newgen Software vs. Alkali Metals 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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