Correlation Between Newgen Software and Steelcast
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By analyzing existing cross correlation between Newgen Software Technologies and Steelcast Limited, you can compare the effects of market volatilities on Newgen Software and Steelcast 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 Steelcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Steelcast.
Diversification Opportunities for Newgen Software and Steelcast
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Newgen and Steelcast is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Steelcast Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steelcast 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 Steelcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steelcast Limited has no effect on the direction of Newgen Software i.e., Newgen Software and Steelcast go up and down completely randomly.
Pair Corralation between Newgen Software and Steelcast
Assuming the 90 days trading horizon Newgen Software Technologies is expected to under-perform the Steelcast. In addition to that, Newgen Software is 1.95 times more volatile than Steelcast Limited. It trades about -0.04 of its total potential returns per unit of risk. Steelcast Limited is currently generating about -0.06 per unit of volatility. If you would invest 82,711 in Steelcast Limited on September 4, 2024 and sell it today you would lose (2,701) from holding Steelcast Limited or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newgen Software Technologies vs. Steelcast Limited
Performance |
| Timeline |
| Newgen Software Tech |
| Steelcast Limited |
Newgen Software and Steelcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Steelcast
The main advantage of trading using opposite Newgen Software and Steelcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Steelcast 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 Steelcast will offset losses from the drop in Steelcast's long position.| Newgen Software vs. Indian Metals Ferro | Newgen Software vs. Orient Technologies Limited | Newgen Software vs. Metalyst Forgings Limited | Newgen Software vs. Hisar Metal Industries |
| Steelcast vs. Paramount Communications Limited | Steelcast vs. Uniinfo Telecom Services | Steelcast vs. Newgen Software Technologies | Steelcast vs. ROUTE MOBILE 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 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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