Correlation Between Newgen Software and Edelweiss Financial
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By analyzing existing cross correlation between Newgen Software Technologies and Edelweiss Financial Services, you can compare the effects of market volatilities on Newgen Software and Edelweiss Financial 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 Edelweiss Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Edelweiss Financial.
Diversification Opportunities for Newgen Software and Edelweiss Financial
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Newgen and Edelweiss is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Edelweiss Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edelweiss Financial 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 Edelweiss Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edelweiss Financial has no effect on the direction of Newgen Software i.e., Newgen Software and Edelweiss Financial go up and down completely randomly.
Pair Corralation between Newgen Software and Edelweiss Financial
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 0.9 times more return on investment than Edelweiss Financial. However, Newgen Software Technologies is 1.11 times less risky than Edelweiss Financial. It trades about 0.11 of its potential returns per unit of risk. Edelweiss Financial Services is currently generating about 0.08 per unit of risk. If you would invest 75,187 in Newgen Software Technologies on September 20, 2024 and sell it today you would earn a total of 74,658 from holding Newgen Software Technologies or generate 99.3% 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. Edelweiss Financial Services
Performance |
| Timeline |
| Newgen Software Tech |
| Edelweiss Financial |
Newgen Software and Edelweiss Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Edelweiss Financial
The main advantage of trading using opposite Newgen Software and Edelweiss Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Edelweiss Financial 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 Edelweiss Financial will offset losses from the drop in Edelweiss Financial'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 |
| Edelweiss Financial vs. Newgen Software Technologies | Edelweiss Financial vs. AXISCADES Technologies Limited | Edelweiss Financial vs. Orient Technologies Limited | Edelweiss Financial vs. LLOYDS METALS AND |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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