Correlation Between Newgen Software and SBI Life
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By analyzing existing cross correlation between Newgen Software Technologies and SBI Life Insurance, you can compare the effects of market volatilities on Newgen Software and SBI Life 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 SBI Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and SBI Life.
Diversification Opportunities for Newgen Software and SBI Life
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newgen and SBI is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and SBI Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Life Insurance 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 SBI Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Life Insurance has no effect on the direction of Newgen Software i.e., Newgen Software and SBI Life go up and down completely randomly.
Pair Corralation between Newgen Software and SBI Life
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 2.72 times more return on investment than SBI Life. However, Newgen Software is 2.72 times more volatile than SBI Life Insurance. It trades about -0.01 of its potential returns per unit of risk. SBI Life Insurance is currently generating about -0.16 per unit of risk. If you would invest 109,605 in Newgen Software Technologies on December 5, 2024 and sell it today you would lose (14,740) from holding Newgen Software Technologies or give up 13.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newgen Software Technologies vs. SBI Life Insurance
Performance |
| Timeline |
| Newgen Software Tech |
| SBI Life Insurance |
Newgen Software and SBI Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and SBI Life
The main advantage of trading using opposite Newgen Software and SBI Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, SBI Life 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 SBI Life will offset losses from the drop in SBI Life's long position.| Newgen Software vs. Max Healthcare Institute | ||
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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