Correlation Between Newgen Software and Country Club
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By analyzing existing cross correlation between Newgen Software Technologies and Country Club Hospitality, you can compare the effects of market volatilities on Newgen Software and Country Club 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 Country Club. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Country Club.
Diversification Opportunities for Newgen Software and Country Club
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newgen and Country is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Country Club Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Country Club Hospitality 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 Country Club. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Country Club Hospitality has no effect on the direction of Newgen Software i.e., Newgen Software and Country Club go up and down completely randomly.
Pair Corralation between Newgen Software and Country Club
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 0.85 times more return on investment than Country Club. However, Newgen Software Technologies is 1.18 times less risky than Country Club. It trades about 0.24 of its potential returns per unit of risk. Country Club Hospitality is currently generating about -0.14 per unit of risk. If you would invest 142,075 in Newgen Software Technologies on October 12, 2024 and sell it today you would earn a total of 18,550 from holding Newgen Software Technologies or generate 13.06% 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. Country Club Hospitality
Performance |
| Timeline |
| Newgen Software Tech |
| Country Club Hospitality |
Newgen Software and Country Club Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Country Club
The main advantage of trading using opposite Newgen Software and Country Club positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Country Club 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 Country Club will offset losses from the drop in Country Club's long position.| Newgen Software vs. Ravi Kumar Distilleries | Newgen Software vs. Bikaji Foods International | Newgen Software vs. Sarveshwar Foods Limited | Newgen Software vs. Tata Communications Limited |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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