Correlation Between Bajaj Hindusthan and Newgen Software
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By analyzing existing cross correlation between Bajaj Hindusthan Sugar and Newgen Software Technologies, you can compare the effects of market volatilities on Bajaj Hindusthan 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 Bajaj Hindusthan with a short position of Newgen Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Hindusthan and Newgen Software.
Diversification Opportunities for Bajaj Hindusthan and Newgen Software
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bajaj and Newgen is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Hindusthan Sugar 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 Bajaj Hindusthan 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 Bajaj Hindusthan Sugar 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 Bajaj Hindusthan i.e., Bajaj Hindusthan and Newgen Software go up and down completely randomly.
Pair Corralation between Bajaj Hindusthan and Newgen Software
Assuming the 90 days trading horizon Bajaj Hindusthan is expected to generate 3.01 times less return on investment than Newgen Software. But when comparing it to its historical volatility, Bajaj Hindusthan Sugar is 1.03 times less risky than Newgen Software. It trades about 0.03 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 87,442 in Newgen Software Technologies on September 3, 2024 and sell it today you would earn a total of 30,218 from holding Newgen Software Technologies or generate 34.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bajaj Hindusthan Sugar vs. Newgen Software Technologies
Performance |
| Timeline |
| Bajaj Hindusthan Sugar |
| Newgen Software Tech |
Bajaj Hindusthan and Newgen Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Hindusthan and Newgen Software
The main advantage of trading using opposite Bajaj Hindusthan and Newgen Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Hindusthan 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.| Bajaj Hindusthan vs. Shemaroo Entertainment Limited | Bajaj Hindusthan vs. Archean Chemical Industries | Bajaj Hindusthan vs. Sumitomo Chemical India | Bajaj Hindusthan vs. Sudarshan Chemical Industries |
| Newgen Software vs. Consolidated Construction Consortium | Newgen Software vs. Biofil Chemicals Pharmaceuticals | Newgen Software vs. Shipping | Newgen Software vs. Indo Borax Chemicals |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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