Correlation Between Newgen Software and Can Fin
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By analyzing existing cross correlation between Newgen Software Technologies and Can Fin Homes, you can compare the effects of market volatilities on Newgen Software and Can Fin 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 Can Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Can Fin.
Diversification Opportunities for Newgen Software and Can Fin
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Newgen and Can is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Can Fin Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fin Homes 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 Can Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fin Homes has no effect on the direction of Newgen Software i.e., Newgen Software and Can Fin go up and down completely randomly.
Pair Corralation between Newgen Software and Can Fin
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 2.82 times more return on investment than Can Fin. However, Newgen Software is 2.82 times more volatile than Can Fin Homes. It trades about 0.09 of its potential returns per unit of risk. Can Fin Homes is currently generating about 0.05 per unit of risk. If you would invest 17,396 in Newgen Software Technologies on August 30, 2024 and sell it today you would earn a total of 96,864 from holding Newgen Software Technologies or generate 556.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Newgen Software Technologies vs. Can Fin Homes
Performance |
| Timeline |
| Newgen Software Tech |
| Can Fin Homes |
Newgen Software and Can Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Can Fin
The main advantage of trading using opposite Newgen Software and Can Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Can Fin 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 Can Fin will offset losses from the drop in Can Fin's long position.The idea behind Newgen Software Technologies and Can Fin Homes pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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