Correlation Between Newgen Software and Baazar Style
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By analyzing existing cross correlation between Newgen Software Technologies and Baazar Style Retail, you can compare the effects of market volatilities on Newgen Software and Baazar Style 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 Baazar Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Baazar Style.
Diversification Opportunities for Newgen Software and Baazar Style
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Newgen and Baazar is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Baazar Style Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baazar Style Retail 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 Baazar Style. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baazar Style Retail has no effect on the direction of Newgen Software i.e., Newgen Software and Baazar Style go up and down completely randomly.
Pair Corralation between Newgen Software and Baazar Style
Assuming the 90 days trading horizon Newgen Software Technologies is expected to under-perform the Baazar Style. In addition to that, Newgen Software is 1.7 times more volatile than Baazar Style Retail. It trades about -0.29 of its total potential returns per unit of risk. Baazar Style Retail is currently generating about -0.25 per unit of volatility. If you would invest 31,545 in Baazar Style Retail on November 7, 2024 and sell it today you would lose (5,720) from holding Baazar Style Retail or give up 18.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newgen Software Technologies vs. Baazar Style Retail
Performance |
| Timeline |
| Newgen Software Tech |
| Baazar Style Retail |
Newgen Software and Baazar Style Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Baazar Style
The main advantage of trading using opposite Newgen Software and Baazar Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Baazar Style 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 Baazar Style will offset losses from the drop in Baazar Style's long position.| Newgen Software vs. City Union Bank | Newgen Software vs. Karur Vysya Bank | Newgen Software vs. Univa Foods Limited | Newgen Software vs. LT Foods Limited |
| Baazar Style vs. Ami Organics Limited | Baazar Style vs. Foods Inns Limited | Baazar Style vs. Fine Organic Industries | Baazar Style vs. Jubilant Foodworks 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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