Correlation Between Newgen Software and SEPC
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By analyzing existing cross correlation between Newgen Software Technologies and SEPC Limited, you can compare the effects of market volatilities on Newgen Software and SEPC 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 SEPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and SEPC.
Diversification Opportunities for Newgen Software and SEPC
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Newgen and SEPC is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and SEPC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEPC 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 SEPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEPC Limited has no effect on the direction of Newgen Software i.e., Newgen Software and SEPC go up and down completely randomly.
Pair Corralation between Newgen Software and SEPC
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 0.78 times more return on investment than SEPC. However, Newgen Software Technologies is 1.28 times less risky than SEPC. It trades about -0.13 of its potential returns per unit of risk. SEPC Limited is currently generating about -0.24 per unit of risk. If you would invest 107,225 in Newgen Software Technologies on December 8, 2024 and sell it today you would lose (8,015) from holding Newgen Software Technologies or give up 7.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newgen Software Technologies vs. SEPC Limited
Performance |
| Timeline |
| Newgen Software Tech |
| SEPC Limited |
Newgen Software and SEPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and SEPC
The main advantage of trading using opposite Newgen Software and SEPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, SEPC 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 SEPC will offset losses from the drop in SEPC's long position.| Newgen Software vs. Visa Steel Limited | ||
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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