Correlation Between Anghami Warrants and Aftermaster

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

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

Diversification Opportunities for Anghami Warrants and Aftermaster

0.7

Correlation Coefficient

Anghami Warrants  Aftermaster

Poor diversification

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

Pair Corralation between Anghami Warrants and Aftermaster

Assuming the 90 days horizon Anghami Warrants is expected to generate 1.03 times more return on investment than Aftermaster. However, Anghami Warrants is 1.03 times more volatile than Aftermaster. It trades about 0.01 of its potential returns per unit of risk. Aftermaster is currently generating about -0.13 per unit of risk. 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

Anghami Warrants  vs.  Aftermaster

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.

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.

Pair Trading with Anghami Warrants and Aftermaster

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

The idea behind Anghami Warrants and Aftermaster 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.