Correlation Between Newgen Software and Infosys
Specify exactly 2 symbols:
By analyzing existing cross correlation between Newgen Software Technologies and Infosys Limited, you can compare the effects of market volatilities on Newgen Software and Infosys 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 Infosys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Infosys.
Diversification Opportunities for Newgen Software and Infosys
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newgen and Infosys is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Infosys Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infosys Limited 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 Infosys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infosys Limited has no effect on the direction of Newgen Software i.e., Newgen Software and Infosys go up and down completely randomly.
Pair Corralation between Newgen Software and Infosys
Assuming the 90 days trading horizon Newgen Software Technologies is expected to under-perform the Infosys. In addition to that, Newgen Software is 2.7 times more volatile than Infosys Limited. It trades about -0.08 of its total potential returns per unit of risk. Infosys Limited is currently generating about 0.09 per unit of volatility. If you would invest 184,435 in Infosys Limited on August 28, 2024 and sell it today you would earn a total of 4,535 from holding Infosys Limited or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Newgen Software Technologies vs. Infosys Limited
Performance |
| Timeline |
| Newgen Software Tech |
| Infosys Limited |
Newgen Software and Infosys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Infosys
The main advantage of trading using opposite Newgen Software and Infosys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Infosys 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 Infosys will offset losses from the drop in Infosys' long position.| Newgen Software vs. Reliance Industries Limited | Newgen Software vs. HDFC Bank Limited | Newgen Software vs. Tata Consultancy Services | Newgen Software vs. Bharti Airtel Limited |
| Infosys vs. Dev Information Technology | Infosys vs. FCS Software Solutions | Infosys vs. Som Distilleries Breweries | Infosys 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |