Correlation Between Anghami Warrants and American Picture

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

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

Diversification Opportunities for Anghami Warrants and American Picture

0.11

Correlation Coefficient

Anghami Warrants  American Picture

Average diversification

The 3 months correlation between Anghami and American is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and American Picture House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Picture House 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 American Picture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Picture House has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and American Picture go up and down completely randomly.

Pair Corralation between Anghami Warrants and American Picture

Assuming the 90 days horizon Anghami Warrants is expected to generate 2.06 times more return on investment than American Picture. However, Anghami Warrants is 2.06 times more volatile than American Picture House. It trades about 0.01 of its potential returns per unit of risk. American Picture House is currently generating about -0.01 per unit of risk. If you would invest  1.79  in Anghami Warrants on December 30, 2024 and sell it today you would lose (0.50) from holding Anghami Warrants or give up 27.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	83.87%
Values	Daily Returns

Anghami Warrants  vs.  American Picture House

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 April 2025.

American Picture House

Risk-Adjusted Performance

Very Weak

Over the last 90 days American Picture House has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, American Picture is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Anghami Warrants and American Picture

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

The idea behind Anghami Warrants and American Picture House 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.