Correlation Between Newgen Software and RHI MAGNESITA
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By analyzing existing cross correlation between Newgen Software Technologies and RHI MAGNESITA INDIA, you can compare the effects of market volatilities on Newgen Software and RHI MAGNESITA 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 RHI MAGNESITA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and RHI MAGNESITA.
Diversification Opportunities for Newgen Software and RHI MAGNESITA
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Newgen and RHI is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and RHI MAGNESITA INDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RHI MAGNESITA 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 RHI MAGNESITA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RHI MAGNESITA INDIA has no effect on the direction of Newgen Software i.e., Newgen Software and RHI MAGNESITA go up and down completely randomly.
Pair Corralation between Newgen Software and RHI MAGNESITA
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 1.76 times more return on investment than RHI MAGNESITA. However, Newgen Software is 1.76 times more volatile than RHI MAGNESITA INDIA. It trades about 0.15 of its potential returns per unit of risk. RHI MAGNESITA INDIA is currently generating about -0.1 per unit of risk. If you would invest 100,108 in Newgen Software Technologies on September 27, 2024 and sell it today you would earn a total of 68,512 from holding Newgen Software Technologies or generate 68.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Newgen Software Technologies vs. RHI MAGNESITA INDIA
Performance |
| Timeline |
| Newgen Software Tech |
| RHI MAGNESITA INDIA |
Newgen Software and RHI MAGNESITA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and RHI MAGNESITA
The main advantage of trading using opposite Newgen Software and RHI MAGNESITA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, RHI MAGNESITA 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 RHI MAGNESITA will offset losses from the drop in RHI MAGNESITA'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 |
| RHI MAGNESITA vs. Newgen Software Technologies | RHI MAGNESITA vs. Privi Speciality Chemicals | RHI MAGNESITA vs. Transport of | RHI MAGNESITA vs. FCS Software Solutions |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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