Correlation Between Hexa Tradex and Newgen Software
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By analyzing existing cross correlation between Hexa Tradex Limited and Newgen Software Technologies, you can compare the effects of market volatilities on Hexa Tradex 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 Hexa Tradex with a short position of Newgen Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexa Tradex and Newgen Software.
Diversification Opportunities for Hexa Tradex and Newgen Software
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hexa and Newgen is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hexa Tradex 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 Hexa Tradex 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 Hexa Tradex 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 Hexa Tradex i.e., Hexa Tradex and Newgen Software go up and down completely randomly.
Pair Corralation between Hexa Tradex and Newgen Software
Assuming the 90 days trading horizon Hexa Tradex Limited is expected to under-perform the Newgen Software. But the stock apears to be less risky and, when comparing its historical volatility, Hexa Tradex Limited is 2.09 times less risky than Newgen Software. The stock trades about -0.32 of its potential returns per unit of risk. The Newgen Software Technologies is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 158,535 in Newgen Software Technologies on October 24, 2024 and sell it today you would lose (27,400) from holding Newgen Software Technologies or give up 17.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hexa Tradex Limited vs. Newgen Software Technologies
Performance |
| Timeline |
| Hexa Tradex Limited |
| Newgen Software Tech |
Hexa Tradex and Newgen Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexa Tradex and Newgen Software
The main advantage of trading using opposite Hexa Tradex and Newgen Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexa Tradex 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.| Hexa Tradex vs. Kaushalya Infrastructure Development | Hexa Tradex vs. Tarapur Transformers Limited | Hexa Tradex vs. Kingfa Science Technology | Hexa Tradex vs. Rico Auto Industries |
| Newgen Software vs. Tube Investments of | Newgen Software vs. Cantabil Retail India | Newgen Software vs. Hexa Tradex Limited | Newgen Software vs. POWERGRID Infrastructure Investment |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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