Correlation Between Newgen Software and Sasken Technologies
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By analyzing existing cross correlation between Newgen Software Technologies and Sasken Technologies Limited, you can compare the effects of market volatilities on Newgen Software and Sasken Technologies 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 Sasken Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Sasken Technologies.
Diversification Opportunities for Newgen Software and Sasken Technologies
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newgen and Sasken is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Sasken Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasken Technologies 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 Sasken Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sasken Technologies has no effect on the direction of Newgen Software i.e., Newgen Software and Sasken Technologies go up and down completely randomly.
Pair Corralation between Newgen Software and Sasken Technologies
Assuming the 90 days trading horizon Newgen Software Technologies is expected to under-perform the Sasken Technologies. In addition to that, Newgen Software is 1.49 times more volatile than Sasken Technologies Limited. It trades about -0.06 of its total potential returns per unit of risk. Sasken Technologies Limited is currently generating about 0.46 per unit of volatility. If you would invest 168,575 in Sasken Technologies Limited on August 29, 2024 and sell it today you would earn a total of 54,290 from holding Sasken Technologies Limited or generate 32.21% 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. Sasken Technologies Limited
Performance |
| Timeline |
| Newgen Software Tech |
| Sasken Technologies |
Newgen Software and Sasken Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Sasken Technologies
The main advantage of trading using opposite Newgen Software and Sasken Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Sasken Technologies 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 Sasken Technologies will offset losses from the drop in Sasken Technologies' long position.| Newgen Software vs. Reliance Industries Limited | Newgen Software vs. Life Insurance | Newgen Software vs. India Glycols Limited | Newgen Software vs. Indo Borax Chemicals |
| Sasken Technologies vs. Reliance Industries Limited | Sasken Technologies vs. Life Insurance | Sasken Technologies vs. India Glycols Limited | Sasken Technologies vs. Indo Borax Chemicals |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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