Correlation Between Aftermaster and Anghami Warrants

Can any of the company-specific risk be diversified away by investing in both Aftermaster and Anghami Warrants 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 Warrants into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Aftermaster and Anghami Warrants

0.7

Correlation Coefficient

Aftermaster  Anghami Warrants

Poor diversification

The 3 months correlation between Aftermaster and Anghami is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Aftermaster and Anghami Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami Warrants 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 Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anghami Warrants has no effect on the direction of Aftermaster i.e., Aftermaster and Anghami Warrants go up and down completely randomly.

Pair Corralation between Aftermaster and Anghami Warrants

Given the investment horizon of 90 days Aftermaster is expected to under-perform the Anghami Warrants. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aftermaster is 1.03 times less risky than Anghami Warrants. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Anghami Warrants is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1.80  in Anghami Warrants on December 31, 2024 and sell it today you would lose (0.51) from holding Anghami Warrants or give up 28.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	83.61%
Values	Daily Returns

Aftermaster  vs.  Anghami Warrants

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 May 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Anghami Warrants

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Anghami Warrants are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent technical indicators, Anghami Warrants may actually be approaching a critical reversion point that can send shares even higher in May 2025.

Pair Trading with Aftermaster and Anghami Warrants

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

The idea behind Aftermaster and Anghami Warrants 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.