Correlation Between GACM Technologies and Newgen Software
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By analyzing existing cross correlation between GACM Technologies Limited and Newgen Software Technologies, you can compare the effects of market volatilities on GACM Technologies 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 GACM Technologies with a short position of Newgen Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of GACM Technologies and Newgen Software.
Diversification Opportunities for GACM Technologies and Newgen Software
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GACM and Newgen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding GACM Technologies 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 GACM Technologies 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 GACM Technologies 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 GACM Technologies i.e., GACM Technologies and Newgen Software go up and down completely randomly.
Pair Corralation between GACM Technologies and Newgen Software
Assuming the 90 days trading horizon GACM Technologies is expected to generate 2.39 times less return on investment than Newgen Software. But when comparing it to its historical volatility, GACM Technologies Limited is 1.32 times less risky than Newgen Software. It trades about 0.37 of its potential returns per unit of risk. Newgen Software Technologies is currently generating about 0.67 of returns per unit of risk over similar time horizon. If you would invest 111,980 in Newgen Software Technologies on September 24, 2024 and sell it today you would earn a total of 45,425 from holding Newgen Software Technologies or generate 40.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GACM Technologies Limited vs. Newgen Software Technologies
Performance |
| Timeline |
| GACM Technologies |
| Newgen Software Tech |
GACM Technologies and Newgen Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GACM Technologies and Newgen Software
The main advantage of trading using opposite GACM Technologies and Newgen Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GACM Technologies 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.| GACM Technologies vs. Bajaj Holdings Investment | GACM Technologies vs. HDFC Asset Management | GACM Technologies vs. Nippon Life India | GACM Technologies vs. 360 ONE WAM |
| Newgen Software vs. Kingfa Science Technology | Newgen Software vs. Rico Auto Industries | Newgen Software vs. GACM Technologies Limited | Newgen Software vs. COSMO FIRST 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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