Correlation Between Newgen Software and Compucom Software
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By analyzing existing cross correlation between Newgen Software Technologies and Compucom Software Limited, you can compare the effects of market volatilities on Newgen Software and Compucom 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 Newgen Software with a short position of Compucom Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Compucom Software.
Diversification Opportunities for Newgen Software and Compucom Software
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newgen and Compucom is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Compucom Software Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compucom Software 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 Compucom Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compucom Software has no effect on the direction of Newgen Software i.e., Newgen Software and Compucom Software go up and down completely randomly.
Pair Corralation between Newgen Software and Compucom Software
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 1.56 times more return on investment than Compucom Software. However, Newgen Software is 1.56 times more volatile than Compucom Software Limited. It trades about 0.1 of its potential returns per unit of risk. Compucom Software Limited is currently generating about 0.04 per unit of risk. If you would invest 20,073 in Newgen Software Technologies on October 13, 2024 and sell it today you would earn a total of 142,587 from holding Newgen Software Technologies or generate 710.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Newgen Software Technologies vs. Compucom Software Limited
Performance |
| Timeline |
| Newgen Software Tech |
| Compucom Software |
Newgen Software and Compucom Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Compucom Software
The main advantage of trading using opposite Newgen Software and Compucom Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Compucom 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 Compucom Software will offset losses from the drop in Compucom Software's long position.| Newgen Software vs. Imagicaaworld Entertainment Limited | Newgen Software vs. Network18 Media Investments | Newgen Software vs. Landmark Cars Limited | Newgen Software vs. Cyber Media Research |
| Compucom Software vs. Kavveri Telecom Products | Compucom Software vs. Music Broadcast Limited | Compucom Software vs. Paramount Communications Limited | Compucom Software vs. Newgen Software Technologies |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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