Correlation Between Newgen Software and Bank of Baroda
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By analyzing existing cross correlation between Newgen Software Technologies and Bank of Baroda, you can compare the effects of market volatilities on Newgen Software and Bank of Baroda 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 Newgen Software with a short position of Bank of Baroda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Bank of Baroda.
Diversification Opportunities for Newgen Software and Bank of Baroda
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Newgen and Bank is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Bank of Baroda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Baroda and Newgen Software 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 Newgen Software Technologies are associated (or correlated) with Bank of Baroda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Baroda has no effect on the direction of Newgen Software i.e., Newgen Software and Bank of Baroda go up and down completely randomly.
Pair Corralation between Newgen Software and Bank of Baroda
Assuming the 90 days trading horizon Newgen Software is expected to generate 1.23 times less return on investment than Bank of Baroda. In addition to that, Newgen Software is 1.81 times more volatile than Bank of Baroda. It trades about 0.04 of its total potential returns per unit of risk. Bank of Baroda is currently generating about 0.09 per unit of volatility. If you would invest 24,267 in Bank of Baroda on September 5, 2024 and sell it today you would earn a total of 1,790 from holding Bank of Baroda or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Newgen Software Technologies vs. Bank of Baroda
Performance |
| Timeline |
| Newgen Software Tech |
| Bank of Baroda |
Newgen Software and Bank of Baroda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Bank of Baroda
The main advantage of trading using opposite Newgen Software and Bank of Baroda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Bank of Baroda 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 Bank of Baroda will offset losses from the drop in Bank of Baroda's long position.| Newgen Software vs. Gangotri Textiles Limited | Newgen Software vs. Hemisphere Properties India | Newgen Software vs. Kingfa Science Technology | Newgen Software vs. Rico Auto Industries |
| Bank of Baroda vs. Kingfa Science Technology | Bank of Baroda vs. Niraj Ispat Industries | Bank of Baroda vs. Newgen Software Technologies | Bank of Baroda vs. Usha Martin Education |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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