Correlation Between Malu Paper and Newgen Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between Malu Paper Mills and Newgen Software Technologies, you can compare the effects of market volatilities on Malu Paper 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 Malu Paper with a short position of Newgen Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malu Paper and Newgen Software.
Diversification Opportunities for Malu Paper and Newgen Software
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Malu and Newgen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Malu Paper Mills 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 Malu Paper 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 Malu Paper Mills 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 Malu Paper i.e., Malu Paper and Newgen Software go up and down completely randomly.
Pair Corralation between Malu Paper and Newgen Software
Assuming the 90 days trading horizon Malu Paper is expected to generate 2.37 times less return on investment than Newgen Software. But when comparing it to its historical volatility, Malu Paper Mills is 1.02 times less risky than Newgen Software. It trades about 0.05 of its potential returns per unit of risk. Newgen Software Technologies is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 126,930 in Newgen Software Technologies on September 13, 2024 and sell it today you would earn a total of 13,515 from holding Newgen Software Technologies or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malu Paper Mills vs. Newgen Software Technologies
Performance |
| Timeline |
| Malu Paper Mills |
| Newgen Software Tech |
Malu Paper and Newgen Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malu Paper and Newgen Software
The main advantage of trading using opposite Malu Paper and Newgen Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malu Paper 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.| Malu Paper vs. NMDC Limited | Malu Paper vs. Steel Authority of | Malu Paper vs. Embassy Office Parks | Malu Paper vs. Gujarat Narmada Valley |
| 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |