Correlation Between Newgen Software and Hybrid Financial
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By analyzing existing cross correlation between Newgen Software Technologies and Hybrid Financial Services, you can compare the effects of market volatilities on Newgen Software and Hybrid 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 Hybrid Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Hybrid Financial.
Diversification Opportunities for Newgen Software and Hybrid Financial
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Newgen and Hybrid is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Hybrid Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hybrid Financial Services 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 Hybrid Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hybrid Financial Services has no effect on the direction of Newgen Software i.e., Newgen Software and Hybrid Financial go up and down completely randomly.
Pair Corralation between Newgen Software and Hybrid Financial
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 1.91 times more return on investment than Hybrid Financial. However, Newgen Software is 1.91 times more volatile than Hybrid Financial Services. It trades about 0.1 of its potential returns per unit of risk. Hybrid Financial Services is currently generating about 0.01 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 Together |
| Strength | Strong |
| Accuracy | 99.59% |
| Values | Daily Returns |
Newgen Software Technologies vs. Hybrid Financial Services
Performance |
| Timeline |
| Newgen Software Tech |
| Hybrid Financial Services |
Newgen Software and Hybrid Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Hybrid Financial
The main advantage of trading using opposite Newgen Software and Hybrid Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Hybrid 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 Hybrid Financial will offset losses from the drop in Hybrid Financial'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 |
| Hybrid Financial vs. Mtar Technologies Limited | Hybrid Financial vs. Newgen Software Technologies | Hybrid Financial vs. Shivalik Bimetal Controls | Hybrid Financial vs. Vertoz Advertising Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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