Correlation Between Newgen Software and Shigan Quantum
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By analyzing existing cross correlation between Newgen Software Technologies and Shigan Quantum Tech, you can compare the effects of market volatilities on Newgen Software and Shigan Quantum 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 Shigan Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Shigan Quantum.
Diversification Opportunities for Newgen Software and Shigan Quantum
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Newgen and Shigan is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Shigan Quantum Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shigan Quantum Tech 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 Shigan Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shigan Quantum Tech has no effect on the direction of Newgen Software i.e., Newgen Software and Shigan Quantum go up and down completely randomly.
Pair Corralation between Newgen Software and Shigan Quantum
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 1.54 times more return on investment than Shigan Quantum. However, Newgen Software is 1.54 times more volatile than Shigan Quantum Tech. It trades about 0.08 of its potential returns per unit of risk. Shigan Quantum Tech is currently generating about -0.07 per unit of risk. If you would invest 21,525 in Newgen Software Technologies on November 7, 2024 and sell it today you would earn a total of 86,975 from holding Newgen Software Technologies or generate 404.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 13.2% |
| Values | Daily Returns |
Newgen Software Technologies vs. Shigan Quantum Tech
Performance |
| Timeline |
| Newgen Software Tech |
| Shigan Quantum Tech |
Newgen Software and Shigan Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Shigan Quantum
The main advantage of trading using opposite Newgen Software and Shigan Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Shigan Quantum 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 Shigan Quantum will offset losses from the drop in Shigan Quantum's long position.| Newgen Software vs. Manaksia Coated Metals | Newgen Software vs. Ankit Metal Power | Newgen Software vs. Hilton Metal Forging | Newgen Software vs. Agarwal Industrial |
| Shigan Quantum vs. Reliance Industries Limited | Shigan Quantum vs. Tata Consultancy Services | Shigan Quantum vs. HDFC Bank Limited | Shigan Quantum vs. Bharti Airtel Limited |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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