Correlation Between Newgen Software and Barbeque Nation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Newgen Software Technologies and Barbeque Nation Hospitality, you can compare the effects of market volatilities on Newgen Software and Barbeque Nation 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 Barbeque Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newgen Software and Barbeque Nation.
Diversification Opportunities for Newgen Software and Barbeque Nation
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Newgen and Barbeque is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Newgen Software Technologies and Barbeque Nation Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barbeque Nation Hosp 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 Barbeque Nation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barbeque Nation Hosp has no effect on the direction of Newgen Software i.e., Newgen Software and Barbeque Nation go up and down completely randomly.
Pair Corralation between Newgen Software and Barbeque Nation
Assuming the 90 days trading horizon Newgen Software Technologies is expected to generate 1.96 times more return on investment than Barbeque Nation. However, Newgen Software is 1.96 times more volatile than Barbeque Nation Hospitality. It trades about 0.1 of its potential returns per unit of risk. Barbeque Nation Hospitality is currently generating about -0.27 per unit of risk. If you would invest 133,200 in Newgen Software Technologies on September 26, 2024 and sell it today you would earn a total of 27,065 from holding Newgen Software Technologies or generate 20.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Newgen Software Technologies vs. Barbeque Nation Hospitality
Performance |
Timeline |
Newgen Software Tech |
Barbeque Nation Hosp |
Newgen Software and Barbeque Nation Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Newgen Software and Barbeque Nation
The main advantage of trading using opposite Newgen Software and Barbeque Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newgen Software position performs unexpectedly, Barbeque Nation 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 Barbeque Nation will offset losses from the drop in Barbeque Nation's long position.Newgen Software vs. Kingfa Science Technology | Newgen Software vs. Rico Auto Industries | Newgen Software vs. GACM Technologies Limited | Newgen Software vs. COSMO FIRST LIMITED |
Barbeque Nation vs. Kingfa Science Technology | Barbeque Nation vs. Rico Auto Industries | Barbeque Nation vs. GACM Technologies Limited | Barbeque Nation vs. COSMO FIRST 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Bonds Directory Find actively traded corporate debentures issued by US companies |