Correlation Between Taj GVK and Newgen Software
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By analyzing existing cross correlation between Taj GVK Hotels and Newgen Software Technologies, you can compare the effects of market volatilities on Taj GVK 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 Taj GVK with a short position of Newgen Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taj GVK and Newgen Software.
Diversification Opportunities for Taj GVK and Newgen Software
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Taj and Newgen is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Taj GVK Hotels 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 Taj GVK 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 Taj GVK Hotels 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 Taj GVK i.e., Taj GVK and Newgen Software go up and down completely randomly.
Pair Corralation between Taj GVK and Newgen Software
Assuming the 90 days trading horizon Taj GVK Hotels is expected to generate 0.62 times more return on investment than Newgen Software. However, Taj GVK Hotels is 1.6 times less risky than Newgen Software. It trades about 0.24 of its potential returns per unit of risk. Newgen Software Technologies is currently generating about -0.08 per unit of risk. If you would invest 29,685 in Taj GVK Hotels on August 28, 2024 and sell it today you would earn a total of 4,225 from holding Taj GVK Hotels or generate 14.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Taj GVK Hotels vs. Newgen Software Technologies
Performance |
| Timeline |
| Taj GVK Hotels |
| Newgen Software Tech |
Taj GVK and Newgen Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taj GVK and Newgen Software
The main advantage of trading using opposite Taj GVK and Newgen Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taj GVK 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.| Taj GVK vs. MMTC Limited | Taj GVK vs. Kingfa Science Technology | Taj GVK vs. Rico Auto Industries | Taj GVK vs. GACM Technologies Limited |
| Newgen Software vs. Reliance Industries Limited | Newgen Software vs. HDFC Bank Limited | Newgen Software vs. Tata Consultancy Services | Newgen Software vs. Bharti Airtel 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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