Correlation Between Consolidated Construction and Newgen Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between Consolidated Construction Consortium and Newgen Software Technologies, you can compare the effects of market volatilities on Consolidated Construction 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 Consolidated Construction with a short position of Newgen Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consolidated Construction and Newgen Software.
Diversification Opportunities for Consolidated Construction and Newgen Software
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Consolidated and Newgen is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Consolidated Construction Cons 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 Consolidated Construction 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 Consolidated Construction Consortium 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 Consolidated Construction i.e., Consolidated Construction and Newgen Software go up and down completely randomly.
Pair Corralation between Consolidated Construction and Newgen Software
Assuming the 90 days trading horizon Consolidated Construction Consortium is expected to under-perform the Newgen Software. In addition to that, Consolidated Construction is 1.2 times more volatile than Newgen Software Technologies. It trades about -0.21 of its total potential returns per unit of risk. Newgen Software Technologies is currently generating about -0.11 per unit of volatility. If you would invest 105,715 in Newgen Software Technologies on November 28, 2024 and sell it today you would lose (9,720) from holding Newgen Software Technologies or give up 9.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consolidated Construction Cons vs. Newgen Software Technologies
Performance |
| Timeline |
| Consolidated Construction |
| Newgen Software Tech |
Consolidated Construction and Newgen Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consolidated Construction and Newgen Software
The main advantage of trading using opposite Consolidated Construction and Newgen Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consolidated Construction 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.The idea behind Consolidated Construction Consortium and Newgen Software Technologies 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.
| Newgen Software vs. Pondy Oxides Chemicals | Newgen Software vs. Fertilizers and Chemicals | Newgen Software vs. Usha Martin Education | Newgen Software vs. Teamlease Services 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |