Correlation Between Newgen Software and JGCHEMICALS
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By analyzing existing cross correlation between Newgen Software Technologies and JGCHEMICALS LIMITED, you can compare the effects of market volatilities on Newgen Software and JGCHEMICALS 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 JGCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and JGCHEMICALS.
Diversification Opportunities for Newgen Software and JGCHEMICALS
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Newgen and JGCHEMICALS is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and JGCHEMICALS LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JGCHEMICALS 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 JGCHEMICALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JGCHEMICALS LIMITED has no effect on the direction of Newgen Software i.e., Newgen Software and JGCHEMICALS go up and down completely randomly.
Pair Corralation between Newgen Software and JGCHEMICALS
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 2.12 times more return on investment than JGCHEMICALS. However, Newgen Software is 2.12 times more volatile than JGCHEMICALS LIMITED. It trades about -0.03 of its potential returns per unit of risk. JGCHEMICALS LIMITED is currently generating about -0.29 per unit of risk. If you would invest 118,050 in Newgen Software Technologies on October 30, 2024 and sell it today you would lose (12,335) from holding Newgen Software Technologies or give up 10.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newgen Software Technologies vs. JGCHEMICALS LIMITED
Performance |
| Timeline |
| Newgen Software Tech |
| JGCHEMICALS LIMITED |
Newgen Software and JGCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and JGCHEMICALS
The main advantage of trading using opposite Newgen Software and JGCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, JGCHEMICALS 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 JGCHEMICALS will offset losses from the drop in JGCHEMICALS's long position.| Newgen Software vs. EIH Associated Hotels | Newgen Software vs. Hindcon Chemicals Limited | Newgen Software vs. Sanginita Chemicals Limited | Newgen Software vs. Chembond Chemicals |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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