Correlation Between Newgen Software and Tube Investments
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By analyzing existing cross correlation between Newgen Software Technologies and Tube Investments of, you can compare the effects of market volatilities on Newgen Software and Tube Investments 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 Tube Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Tube Investments.
Diversification Opportunities for Newgen Software and Tube Investments
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Newgen and Tube is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Tube Investments of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tube Investments 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 Tube Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tube Investments has no effect on the direction of Newgen Software i.e., Newgen Software and Tube Investments go up and down completely randomly.
Pair Corralation between Newgen Software and Tube Investments
Assuming the 90 days trading horizon Newgen Software Technologies is expected to under-perform the Tube Investments. But the stock apears to be less risky and, when comparing its historical volatility, Newgen Software Technologies is 1.13 times less risky than Tube Investments. The stock trades about -0.06 of its potential returns per unit of risk. The Tube Investments of is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 268,260 in Tube Investments of on December 14, 2024 and sell it today you would earn a total of 24,395 from holding Tube Investments of or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newgen Software Technologies vs. Tube Investments of
Performance |
| Timeline |
| Newgen Software Tech |
| Tube Investments |
Newgen Software and Tube Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Tube Investments
The main advantage of trading using opposite Newgen Software and Tube Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Tube Investments 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 Tube Investments will offset losses from the drop in Tube Investments' long position.| Newgen Software vs. Asian Hotels 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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