Correlation Between Newgen Software and Man Infraconstructio
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By analyzing existing cross correlation between Newgen Software Technologies and Man Infraconstruction Limited, you can compare the effects of market volatilities on Newgen Software and Man Infraconstructio 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 Man Infraconstructio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Man Infraconstructio.
Diversification Opportunities for Newgen Software and Man Infraconstructio
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Newgen and Man is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Man Infraconstruction Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Man Infraconstruction 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 Man Infraconstructio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Man Infraconstruction has no effect on the direction of Newgen Software i.e., Newgen Software and Man Infraconstructio go up and down completely randomly.
Pair Corralation between Newgen Software and Man Infraconstructio
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 1.19 times more return on investment than Man Infraconstructio. However, Newgen Software is 1.19 times more volatile than Man Infraconstruction Limited. It trades about 0.2 of its potential returns per unit of risk. Man Infraconstruction Limited is currently generating about -0.15 per unit of risk. If you would invest 142,890 in Newgen Software Technologies on October 16, 2024 and sell it today you would earn a total of 15,020 from holding Newgen Software Technologies or generate 10.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newgen Software Technologies vs. Man Infraconstruction Limited
Performance |
| Timeline |
| Newgen Software Tech |
| Man Infraconstruction |
Newgen Software and Man Infraconstructio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Man Infraconstructio
The main advantage of trading using opposite Newgen Software and Man Infraconstructio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Man Infraconstructio 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 Man Infraconstructio will offset losses from the drop in Man Infraconstructio'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 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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