Correlation Between Newgen Software and Bikaji Foods
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By analyzing existing cross correlation between Newgen Software Technologies and Bikaji Foods International, you can compare the effects of market volatilities on Newgen Software and Bikaji Foods 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 Bikaji Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Bikaji Foods.
Diversification Opportunities for Newgen Software and Bikaji Foods
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newgen and Bikaji is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Bikaji Foods International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bikaji Foods Interna 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 Bikaji Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bikaji Foods Interna has no effect on the direction of Newgen Software i.e., Newgen Software and Bikaji Foods go up and down completely randomly.
Pair Corralation between Newgen Software and Bikaji Foods
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 1.45 times more return on investment than Bikaji Foods. However, Newgen Software is 1.45 times more volatile than Bikaji Foods International. It trades about 0.29 of its potential returns per unit of risk. Bikaji Foods International is currently generating about -0.45 per unit of risk. If you would invest 141,755 in Newgen Software Technologies on October 11, 2024 and sell it today you would earn a total of 22,510 from holding Newgen Software Technologies or generate 15.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newgen Software Technologies vs. Bikaji Foods International
Performance |
| Timeline |
| Newgen Software Tech |
| Bikaji Foods Interna |
Newgen Software and Bikaji Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Bikaji Foods
The main advantage of trading using opposite Newgen Software and Bikaji Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Bikaji Foods 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 Bikaji Foods will offset losses from the drop in Bikaji Foods' long position.| Newgen Software vs. R S Software | Newgen Software vs. Praxis Home Retail | Newgen Software vs. Osia Hyper Retail | Newgen Software vs. Silgo Retail Limited |
| Bikaji Foods vs. LT Foods Limited | Bikaji Foods vs. Varun Beverages Limited | Bikaji Foods vs. Dodla Dairy Limited | Bikaji Foods vs. Som Distilleries Breweries |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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