Correlation Between Newgen Software and NIIT
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By analyzing existing cross correlation between Newgen Software Technologies and NIIT Limited, you can compare the effects of market volatilities on Newgen Software and NIIT 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 NIIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and NIIT.
Diversification Opportunities for Newgen Software and NIIT
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Newgen and NIIT is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and NIIT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIIT 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 NIIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIIT Limited has no effect on the direction of Newgen Software i.e., Newgen Software and NIIT go up and down completely randomly.
Pair Corralation between Newgen Software and NIIT
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 1.19 times more return on investment than NIIT. However, Newgen Software is 1.19 times more volatile than NIIT Limited. It trades about 0.1 of its potential returns per unit of risk. NIIT Limited is currently generating about 0.02 per unit of risk. If you would invest 18,287 in Newgen Software Technologies on September 24, 2024 and sell it today you would earn a total of 139,118 from holding Newgen Software Technologies or generate 760.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Newgen Software Technologies vs. NIIT Limited
Performance |
| Timeline |
| Newgen Software Tech |
| NIIT Limited |
Newgen Software and NIIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and NIIT
The main advantage of trading using opposite Newgen Software and NIIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, NIIT 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 NIIT will offset losses from the drop in NIIT's long position.| Newgen Software vs. Kingfa Science Technology | Newgen Software vs. Rico Auto Industries | Newgen Software vs. GACM Technologies Limited | Newgen Software vs. COSMO FIRST LIMITED |
| NIIT vs. FCS Software Solutions | NIIT vs. Sasken Technologies Limited | NIIT vs. Kalyani Steels Limited | NIIT vs. Newgen Software Technologies |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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