Correlation Between State Trading and Newgen Software
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By analyzing existing cross correlation between The State Trading and Newgen Software Technologies, you can compare the effects of market volatilities on State Trading and Newgen Software 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 State Trading with a short position of Newgen Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Trading and Newgen Software.
Diversification Opportunities for State Trading and Newgen Software
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and Newgen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding The State Trading and Newgen Software Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newgen Software Tech and State Trading 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 The State Trading are associated (or correlated) with Newgen Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newgen Software Tech has no effect on the direction of State Trading i.e., State Trading and Newgen Software go up and down completely randomly.
Pair Corralation between State Trading and Newgen Software
Assuming the 90 days trading horizon State Trading is expected to generate 2.35 times less return on investment than Newgen Software. In addition to that, State Trading is 1.24 times more volatile than Newgen Software Technologies. It trades about 0.05 of its total potential returns per unit of risk. Newgen Software Technologies is currently generating about 0.15 per unit of volatility. If you would invest 73,332 in Newgen Software Technologies on September 18, 2024 and sell it today you would earn a total of 76,508 from holding Newgen Software Technologies or generate 104.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
The State Trading vs. Newgen Software Technologies
Performance |
| Timeline |
| State Trading |
| Newgen Software Tech |
State Trading and Newgen Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Trading and Newgen Software
The main advantage of trading using opposite State Trading and Newgen Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Trading position performs unexpectedly, Newgen Software 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 Newgen Software will offset losses from the drop in Newgen Software's long position.| State Trading vs. Yes Bank Limited | State Trading vs. Kingfa Science Technology | State Trading vs. Rico Auto Industries | State Trading vs. GACM Technologies Limited |
| Newgen Software vs. The Orissa Minerals | Newgen Software vs. Malu Paper Mills | Newgen Software vs. Kingfa Science Technology | Newgen Software vs. Rico Auto Industries |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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