Correlation Between Newgen Software and Jai Balaji
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By analyzing existing cross correlation between Newgen Software Technologies and Jai Balaji Industries, you can compare the effects of market volatilities on Newgen Software and Jai Balaji 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 Jai Balaji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Jai Balaji.
Diversification Opportunities for Newgen Software and Jai Balaji
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newgen and Jai is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Jai Balaji Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jai Balaji Industries 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 Jai Balaji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jai Balaji Industries has no effect on the direction of Newgen Software i.e., Newgen Software and Jai Balaji go up and down completely randomly.
Pair Corralation between Newgen Software and Jai Balaji
Assuming the 90 days trading horizon Newgen Software is expected to generate 5.91 times less return on investment than Jai Balaji. But when comparing it to its historical volatility, Newgen Software Technologies is 7.92 times less risky than Jai Balaji. It trades about 0.06 of its potential returns per unit of risk. Jai Balaji Industries is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 21,212 in Jai Balaji Industries on November 7, 2024 and sell it today you would lose (7,826) from holding Jai Balaji Industries or give up 36.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.51% |
| Values | Daily Returns |
Newgen Software Technologies vs. Jai Balaji Industries
Performance |
| Timeline |
| Newgen Software Tech |
| Jai Balaji Industries |
Newgen Software and Jai Balaji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Jai Balaji
The main advantage of trading using opposite Newgen Software and Jai Balaji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Jai Balaji 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 Jai Balaji will offset losses from the drop in Jai Balaji's long position.| Newgen Software vs. Manaksia Coated Metals | Newgen Software vs. Ankit Metal Power | Newgen Software vs. Hilton Metal Forging | Newgen Software vs. Agarwal Industrial |
| Jai Balaji vs. Ratnamani Metals Tubes | Jai Balaji vs. DJ Mediaprint Logistics | Jai Balaji vs. Zee Entertainment Enterprises | Jai Balaji vs. Cyber Media Research |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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