Correlation Between HFCL and Newgen Software
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By analyzing existing cross correlation between HFCL Limited and Newgen Software Technologies, you can compare the effects of market volatilities on HFCL 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 HFCL with a short position of Newgen Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of HFCL and Newgen Software.
Diversification Opportunities for HFCL and Newgen Software
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between HFCL and Newgen is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding HFCL 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 HFCL 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 HFCL 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 HFCL i.e., HFCL and Newgen Software go up and down completely randomly.
Pair Corralation between HFCL and Newgen Software
Assuming the 90 days trading horizon HFCL Limited is expected to generate 0.56 times more return on investment than Newgen Software. However, HFCL Limited is 1.77 times less risky than Newgen Software. It trades about 0.17 of its potential returns per unit of risk. Newgen Software Technologies is currently generating about -0.08 per unit of risk. If you would invest 11,738 in HFCL Limited on August 28, 2024 and sell it today you would earn a total of 959.00 from holding HFCL Limited or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HFCL Limited vs. Newgen Software Technologies
Performance |
| Timeline |
| HFCL Limited |
| Newgen Software Tech |
HFCL and Newgen Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HFCL and Newgen Software
The main advantage of trading using opposite HFCL and Newgen Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HFCL 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.| HFCL vs. Jindal Poly Investment | HFCL vs. Yatra Online Limited | HFCL vs. Tube Investments of | HFCL vs. Ravi Kumar Distilleries |
| Newgen Software vs. Reliance Industries Limited | Newgen Software vs. HDFC Bank Limited | Newgen Software vs. Tata Consultancy Services | Newgen Software vs. Bharti Airtel 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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