Correlation Between Newgen Software and Kaynes Technology
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By analyzing existing cross correlation between Newgen Software Technologies and Kaynes Technology India, you can compare the effects of market volatilities on Newgen Software and Kaynes Technology 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 Kaynes Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Kaynes Technology.
Diversification Opportunities for Newgen Software and Kaynes Technology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Newgen and Kaynes is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Kaynes Technology India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaynes Technology India 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 Kaynes Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaynes Technology India has no effect on the direction of Newgen Software i.e., Newgen Software and Kaynes Technology go up and down completely randomly.
Pair Corralation between Newgen Software and Kaynes Technology
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 1.15 times more return on investment than Kaynes Technology. However, Newgen Software is 1.15 times more volatile than Kaynes Technology India. It trades about -0.29 of its potential returns per unit of risk. Kaynes Technology India is currently generating about -0.35 per unit of risk. If you would invest 164,400 in Newgen Software Technologies on November 7, 2024 and sell it today you would lose (55,900) from holding Newgen Software Technologies or give up 34.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Newgen Software Technologies vs. Kaynes Technology India
Performance |
| Timeline |
| Newgen Software Tech |
| Kaynes Technology India |
Newgen Software and Kaynes Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Kaynes Technology
The main advantage of trading using opposite Newgen Software and Kaynes Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Kaynes Technology 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 Kaynes Technology will offset losses from the drop in Kaynes Technology's long position.| Newgen Software vs. City Union Bank | Newgen Software vs. Karur Vysya Bank | Newgen Software vs. Univa Foods Limited | Newgen Software vs. LT Foods Limited |
| Kaynes Technology vs. Life Insurance | Kaynes Technology vs. Power Finance | Kaynes Technology vs. HDFC Bank Limited | Kaynes Technology vs. State Bank of |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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