Correlation Between Newgen Software and Lakshmi Finance
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By analyzing existing cross correlation between Newgen Software Technologies and Lakshmi Finance Industrial, you can compare the effects of market volatilities on Newgen Software and Lakshmi Finance 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 Lakshmi Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Lakshmi Finance.
Diversification Opportunities for Newgen Software and Lakshmi Finance
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newgen and Lakshmi is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Lakshmi Finance Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakshmi Finance Indu 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 Lakshmi Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakshmi Finance Indu has no effect on the direction of Newgen Software i.e., Newgen Software and Lakshmi Finance go up and down completely randomly.
Pair Corralation between Newgen Software and Lakshmi Finance
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 1.45 times more return on investment than Lakshmi Finance. However, Newgen Software is 1.45 times more volatile than Lakshmi Finance Industrial. It trades about 0.1 of its potential returns per unit of risk. Lakshmi Finance Industrial is currently generating about 0.06 per unit of risk. If you would invest 20,588 in Newgen Software Technologies on October 15, 2024 and sell it today you would earn a total of 142,072 from holding Newgen Software Technologies or generate 690.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newgen Software Technologies vs. Lakshmi Finance Industrial
Performance |
| Timeline |
| Newgen Software Tech |
| Lakshmi Finance Indu |
Newgen Software and Lakshmi Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Lakshmi Finance
The main advantage of trading using opposite Newgen Software and Lakshmi Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Lakshmi Finance 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 Lakshmi Finance will offset losses from the drop in Lakshmi Finance's long position.| Newgen Software vs. Sonata Software Limited | Newgen Software vs. S P Apparels | Newgen Software vs. Selan Exploration Technology | Newgen Software vs. NRB Industrial Bearings |
| Lakshmi Finance vs. Rajnandini Metal Limited | Lakshmi Finance vs. LLOYDS METALS AND | Lakshmi Finance vs. Spencers Retail Limited | Lakshmi Finance vs. Rainbow Childrens Medicare |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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