Correlation Between Newgen Software and Waaree Energies
Specify exactly 2 symbols:
By analyzing existing cross correlation between Newgen Software Technologies and Waaree Energies Limited, you can compare the effects of market volatilities on Newgen Software and Waaree Energies 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 Waaree Energies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Waaree Energies.
Diversification Opportunities for Newgen Software and Waaree Energies
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Newgen and Waaree is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Waaree Energies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waaree Energies 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 Waaree Energies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waaree Energies has no effect on the direction of Newgen Software i.e., Newgen Software and Waaree Energies go up and down completely randomly.
Pair Corralation between Newgen Software and Waaree Energies
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 1.31 times more return on investment than Waaree Energies. However, Newgen Software is 1.31 times more volatile than Waaree Energies Limited. It trades about 0.08 of its potential returns per unit of risk. Waaree Energies Limited is currently generating about 0.03 per unit of risk. If you would invest 21,321 in Newgen Software Technologies on November 6, 2024 and sell it today you would earn a total of 83,494 from holding Newgen Software Technologies or generate 391.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 14.02% |
| Values | Daily Returns |
Newgen Software Technologies vs. Waaree Energies Limited
Performance |
| Timeline |
| Newgen Software Tech |
| Waaree Energies |
Newgen Software and Waaree Energies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newgen Software and Waaree Energies
The main advantage of trading using opposite Newgen Software and Waaree Energies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Waaree Energies 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 Waaree Energies will offset losses from the drop in Waaree Energies' 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 |
| Waaree Energies vs. STEEL EXCHANGE INDIA | Waaree Energies vs. Mahamaya Steel Industries | Waaree Energies vs. Manaksia Steels Limited | Waaree Energies vs. Salzer Electronics 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |