Correlation Between Maxx Sports and Anghami De

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

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

Diversification Opportunities for Maxx Sports and Anghami De

0.26

Correlation Coefficient

Maxx Sports  Anghami De

Modest diversification

The 3 months correlation between Maxx and Anghami is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Maxx Sports TV and Anghami De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami De and Maxx Sports 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 Maxx Sports TV 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 Maxx Sports i.e., Maxx Sports and Anghami De go up and down completely randomly.

Pair Corralation between Maxx Sports and Anghami De

Given the investment horizon of 90 days Maxx Sports TV is expected to generate 3.27 times more return on investment than Anghami De. However, Maxx Sports is 3.27 times more volatile than Anghami De. It trades about 0.03 of its potential returns per unit of risk. Anghami De is currently generating about 0.01 per unit of risk. If you would invest  7.00  in Maxx Sports TV on October 7, 2024 and sell it today you would lose (6.97) from holding Maxx Sports TV or give up 99.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.56%
Values	Daily Returns

Maxx Sports TV  vs.  Anghami De

Maxx Sports TV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maxx Sports TV 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 fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Anghami De

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anghami De has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Anghami De is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Maxx Sports and Anghami De

The main advantage of trading using opposite Maxx Sports and Anghami De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxx Sports 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 Maxx Sports TV 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.