Correlation Between Anghami Warrants and News Corp

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

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

Diversification Opportunities for Anghami Warrants and News Corp

0.72

Correlation Coefficient

Anghami Warrants  News Corp

Poor diversification

The 3 months correlation between Anghami and News is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and News Corp B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on News Corp B 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 News Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of News Corp B has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and News Corp go up and down completely randomly.

Pair Corralation between Anghami Warrants and News Corp

Assuming the 90 days horizon Anghami Warrants is expected to generate 23.15 times more return on investment than News Corp. However, Anghami Warrants is 23.15 times more volatile than News Corp B. It trades about 0.11 of its potential returns per unit of risk. News Corp B is currently generating about 0.19 per unit of risk. If you would invest  2.90  in Anghami Warrants on September 22, 2024 and sell it today you would earn a total of  0.10  from holding Anghami Warrants or generate 3.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	60.47%
Values	Daily Returns

Anghami Warrants  vs.  News Corp B

Anghami Warrants

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Anghami Warrants are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical indicators, Anghami Warrants showed solid returns over the last few months and may actually be approaching a breakup point.

News Corp B

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in News Corp B are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, News Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Anghami Warrants and News Corp

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

The idea behind Anghami Warrants and News Corp B 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.