Correlation Between Newgen Software and Taj GVK
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By analyzing existing cross correlation between Newgen Software Technologies and Taj GVK Hotels, you can compare the effects of market volatilities on Newgen Software and Taj GVK 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 Taj GVK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Taj GVK.
Diversification Opportunities for Newgen Software and Taj GVK
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Newgen and Taj is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Taj GVK Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taj GVK Hotels 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 Taj GVK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taj GVK Hotels has no effect on the direction of Newgen Software i.e., Newgen Software and Taj GVK go up and down completely randomly.
Pair Corralation between Newgen Software and Taj GVK
Assuming the 90 days trading horizon Newgen Software Technologies is expected to under-perform the Taj GVK. In addition to that, Newgen Software is 1.54 times more volatile than Taj GVK Hotels. It trades about -0.1 of its total potential returns per unit of risk. Taj GVK Hotels is currently generating about 0.24 per unit of volatility. If you would invest 28,820 in Taj GVK Hotels on August 24, 2024 and sell it today you would earn a total of 4,240 from holding Taj GVK Hotels or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newgen Software Technologies vs. Taj GVK Hotels
Performance |
| Timeline |
| Newgen Software Tech |
| Taj GVK Hotels |
Newgen Software and Taj GVK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Taj GVK
The main advantage of trading using opposite Newgen Software and Taj GVK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Taj GVK 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 Taj GVK will offset losses from the drop in Taj GVK's long position.| Newgen Software vs. Divis Laboratories Limited | Newgen Software vs. Indo Borax Chemicals | Newgen Software vs. Kingfa Science Technology | Newgen Software vs. Alkali Metals Limited |
| Taj GVK vs. Reliance Industries Limited | Taj GVK vs. Indian Oil | Taj GVK vs. HDFC Bank Limited | Taj GVK vs. Divis Laboratories 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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