Correlation Between Cambridge Technology and Newgen Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cambridge Technology Enterprises and Newgen Software Technologies, you can compare the effects of market volatilities on Cambridge Technology 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 Cambridge Technology with a short position of Newgen Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambridge Technology and Newgen Software.
Diversification Opportunities for Cambridge Technology and Newgen Software
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cambridge and Newgen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cambridge Technology Enterpris 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 Cambridge Technology 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 Cambridge Technology Enterprises 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 Cambridge Technology i.e., Cambridge Technology and Newgen Software go up and down completely randomly.
Pair Corralation between Cambridge Technology and Newgen Software
Assuming the 90 days trading horizon Cambridge Technology is expected to generate 2.43 times less return on investment than Newgen Software. But when comparing it to its historical volatility, Cambridge Technology Enterprises is 1.4 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 0.05 of returns per unit of risk over similar time horizon. If you would invest 135,085 in Newgen Software Technologies on September 13, 2024 and sell it today you would earn a total of 6,990 from holding Newgen Software Technologies or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambridge Technology Enterpris vs. Newgen Software Technologies
Performance |
| Timeline |
| Cambridge Technology |
| Newgen Software Tech |
Cambridge Technology and Newgen Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambridge Technology and Newgen Software
The main advantage of trading using opposite Cambridge Technology and Newgen Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambridge Technology 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.| Cambridge Technology vs. Vodafone Idea Limited | Cambridge Technology vs. Yes Bank Limited | Cambridge Technology vs. Indian Overseas Bank | Cambridge Technology vs. Indian Oil |
| Newgen Software vs. The Orissa Minerals | Newgen Software vs. Malu Paper Mills | Newgen Software vs. Kingfa Science Technology | Newgen Software vs. Rico Auto Industries |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |