Correlation Between COSMO FIRST and Newgen Software
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By analyzing existing cross correlation between COSMO FIRST LIMITED and Newgen Software Technologies, you can compare the effects of market volatilities on COSMO FIRST 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 COSMO FIRST with a short position of Newgen Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and Newgen Software.
Diversification Opportunities for COSMO FIRST and Newgen Software
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between COSMO and Newgen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST 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 COSMO FIRST 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 COSMO FIRST 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 COSMO FIRST i.e., COSMO FIRST and Newgen Software go up and down completely randomly.
Pair Corralation between COSMO FIRST and Newgen Software
Assuming the 90 days trading horizon COSMO FIRST is expected to generate 1.76 times less return on investment than Newgen Software. In addition to that, COSMO FIRST is 1.09 times more volatile than Newgen Software Technologies. It trades about 0.07 of its total potential returns per unit of risk. Newgen Software Technologies is currently generating about 0.14 per unit of volatility. If you would invest 92,114 in Newgen Software Technologies on October 13, 2024 and sell it today you would earn a total of 70,546 from holding Newgen Software Technologies or generate 76.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
COSMO FIRST LIMITED vs. Newgen Software Technologies
Performance |
| Timeline |
| COSMO FIRST LIMITED |
| Newgen Software Tech |
COSMO FIRST and Newgen Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMO FIRST and Newgen Software
The main advantage of trading using opposite COSMO FIRST and Newgen Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST 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.| COSMO FIRST vs. Network18 Media Investments | COSMO FIRST vs. Tera Software Limited | COSMO FIRST vs. Dhunseri Investments Limited | COSMO FIRST vs. Industrial Investment Trust |
| Newgen Software vs. Ravi Kumar Distilleries | Newgen Software vs. Bikaji Foods International | Newgen Software vs. Sarveshwar Foods Limited | Newgen Software vs. Tata Communications 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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