Correlation Between Anghami Warrants and Paramount Global

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

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

Diversification Opportunities for Anghami Warrants and Paramount Global

-0.44

Correlation Coefficient

Anghami Warrants  Paramount Global

Very good diversification

The 3 months correlation between Anghami and Paramount is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and Paramount Global Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paramount Global Class 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 Paramount Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paramount Global Class has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and Paramount Global go up and down completely randomly.

Pair Corralation between Anghami Warrants and Paramount Global

Assuming the 90 days horizon Anghami Warrants is expected to generate 14.5 times more return on investment than Paramount Global. However, Anghami Warrants is 14.5 times more volatile than Paramount Global Class. It trades about 0.01 of its potential returns per unit of risk. Paramount Global Class is currently generating about 0.05 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 Against
Strength	Very Weak
Accuracy	83.87%
Values	Daily Returns

Anghami Warrants  vs.  Paramount Global Class

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.

Paramount Global Class

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Paramount Global Class are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Paramount Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Anghami Warrants and Paramount Global

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

The idea behind Anghami Warrants and Paramount Global Class 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.