Correlation Between Anghami Warrants and Cheer Holding

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

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

Diversification Opportunities for Anghami Warrants and Cheer Holding

-0.37

Correlation Coefficient

Anghami Warrants  Cheer Holding

Very good diversification

The 3 months correlation between Anghami and Cheer is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and Cheer Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheer Holding 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 Cheer Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheer Holding has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and Cheer Holding go up and down completely randomly.

Pair Corralation between Anghami Warrants and Cheer Holding

Assuming the 90 days horizon Anghami Warrants is expected to under-perform the Cheer Holding. In addition to that, Anghami Warrants is 7.23 times more volatile than Cheer Holding. It trades about -0.04 of its total potential returns per unit of risk. Cheer Holding is currently generating about 0.13 per unit of volatility. If you would invest  247.00  in Cheer Holding on September 27, 2024 and sell it today you would earn a total of  22.00  from holding Cheer Holding or generate 8.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	86.36%
Values	Daily Returns

Anghami Warrants  vs.  Cheer Holding

Anghami Warrants

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Anghami Warrants are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady technical indicators, Anghami Warrants showed solid returns over the last few months and may actually be approaching a breakup point.

Cheer Holding

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Anghami Warrants and Cheer Holding

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

The idea behind Anghami Warrants and Cheer Holding 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.