Correlation Between Aftermaster and Anghami De

Can any of the company-specific risk be diversified away by investing in both Aftermaster and Anghami De at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aftermaster and Anghami De into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aftermaster and Anghami De, you can compare the effects of market volatilities on Aftermaster and Anghami De 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 Aftermaster with a short position of Anghami De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aftermaster and Anghami De.

Diversification Opportunities for Aftermaster and Anghami De

0.82

Correlation Coefficient

Aftermaster  Anghami De

Very poor diversification

The 3 months correlation between Aftermaster and Anghami is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Aftermaster and Anghami De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami De and Aftermaster 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 Aftermaster are associated (or correlated) with Anghami De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anghami De has no effect on the direction of Aftermaster i.e., Aftermaster and Anghami De go up and down completely randomly.

Pair Corralation between Aftermaster and Anghami De

Given the investment horizon of 90 days Aftermaster is expected to under-perform the Anghami De. In addition to that, Aftermaster is 2.53 times more volatile than Anghami De. It trades about -0.13 of its total potential returns per unit of risk. Anghami De is currently generating about -0.05 per unit of volatility. If you would invest  78.00  in Anghami De on December 24, 2024 and sell it today you would lose (15.70) from holding Anghami De or give up 20.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.36%
Values	Daily Returns

Aftermaster  vs.  Anghami De

Aftermaster

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aftermaster has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Anghami De

Risk-Adjusted Performance

Very Weak

Over the last 90 days Anghami De has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Aftermaster and Anghami De

The main advantage of trading using opposite Aftermaster and Anghami De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aftermaster position performs unexpectedly, Anghami De 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 Anghami De will offset losses from the drop in Anghami De's long position.

The idea behind Aftermaster and Anghami De pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.