Correlation Between Newgen Software and Cambridge Technology
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By analyzing existing cross correlation between Newgen Software Technologies and Cambridge Technology Enterprises, you can compare the effects of market volatilities on Newgen Software and Cambridge Technology 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 Cambridge Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Cambridge Technology.
Diversification Opportunities for Newgen Software and Cambridge Technology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Newgen and Cambridge is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Cambridge Technology Enterpris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambridge Technology 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 Cambridge Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambridge Technology has no effect on the direction of Newgen Software i.e., Newgen Software and Cambridge Technology go up and down completely randomly.
Pair Corralation between Newgen Software and Cambridge Technology
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 1.4 times more return on investment than Cambridge Technology. However, Newgen Software is 1.4 times more volatile than Cambridge Technology Enterprises. It trades about 0.05 of its potential returns per unit of risk. Cambridge Technology Enterprises is currently generating about 0.03 per unit of risk. If you would invest 135,085 in Newgen Software Technologies on September 13, 2024 and sell it today you would earn a total of 6,990 from holding Newgen Software Technologies or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newgen Software Technologies vs. Cambridge Technology Enterpris
Performance |
| Timeline |
| Newgen Software Tech |
| Cambridge Technology |
Newgen Software and Cambridge Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Cambridge Technology
The main advantage of trading using opposite Newgen Software and Cambridge Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Cambridge Technology 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 Cambridge Technology will offset losses from the drop in Cambridge Technology's long position.| Newgen Software vs. The Orissa Minerals | Newgen Software vs. Malu Paper Mills | Newgen Software vs. Kingfa Science Technology | Newgen Software vs. Rico Auto Industries |
| Cambridge Technology vs. Vodafone Idea Limited | Cambridge Technology vs. Yes Bank Limited | Cambridge Technology vs. Indian Overseas Bank | Cambridge Technology vs. Indian Oil |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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