Correlation Between Newgen Software and Electrosteel Castings
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By analyzing existing cross correlation between Newgen Software Technologies and Electrosteel Castings Limited, you can compare the effects of market volatilities on Newgen Software and Electrosteel Castings 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 Electrosteel Castings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Electrosteel Castings.
Diversification Opportunities for Newgen Software and Electrosteel Castings
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newgen and Electrosteel is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Electrosteel Castings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrosteel Castings 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 Electrosteel Castings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrosteel Castings has no effect on the direction of Newgen Software i.e., Newgen Software and Electrosteel Castings go up and down completely randomly.
Pair Corralation between Newgen Software and Electrosteel Castings
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 1.11 times more return on investment than Electrosteel Castings. However, Newgen Software is 1.11 times more volatile than Electrosteel Castings Limited. It trades about 0.11 of its potential returns per unit of risk. Electrosteel Castings Limited is currently generating about -0.2 per unit of risk. If you would invest 134,135 in Newgen Software Technologies on September 29, 2024 and sell it today you would earn a total of 28,030 from holding Newgen Software Technologies or generate 20.9% 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. Electrosteel Castings Limited
Performance |
| Timeline |
| Newgen Software Tech |
| Electrosteel Castings |
Newgen Software and Electrosteel Castings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Electrosteel Castings
The main advantage of trading using opposite Newgen Software and Electrosteel Castings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Electrosteel Castings 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 Electrosteel Castings will offset losses from the drop in Electrosteel Castings' long position.| Newgen Software vs. Kingfa Science Technology | Newgen Software vs. Rico Auto Industries | Newgen Software vs. GACM Technologies Limited | Newgen Software vs. COSMO FIRST LIMITED |
| Electrosteel Castings vs. Healthcare Global Enterprises | Electrosteel Castings vs. California Software | Electrosteel Castings vs. R S Software | Electrosteel Castings 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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