Correlation Between Anghami Warrants and Sky Harbour

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

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

Diversification Opportunities for Anghami Warrants and Sky Harbour

0.32

Correlation Coefficient

Anghami Warrants  Sky Harbour

Weak diversification

The 3 months correlation between Anghami and Sky is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and Sky Harbour Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky Harbour Group 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 Sky Harbour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky Harbour Group has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and Sky Harbour go up and down completely randomly.

Pair Corralation between Anghami Warrants and Sky Harbour

Assuming the 90 days horizon Anghami Warrants is expected to generate 1.6 times less return on investment than Sky Harbour. In addition to that, Anghami Warrants is 2.4 times more volatile than Sky Harbour Group. It trades about 0.01 of its total potential returns per unit of risk. Sky Harbour Group is currently generating about 0.06 per unit of volatility. If you would invest  305.00  in Sky Harbour Group on December 29, 2024 and sell it today you would earn a total of  33.00  from holding Sky Harbour Group or generate 10.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	83.61%
Values	Daily Returns

Anghami Warrants  vs.  Sky Harbour Group

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.

Sky Harbour Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sky Harbour Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Sky Harbour unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Anghami Warrants and Sky Harbour

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

The idea behind Anghami Warrants and Sky Harbour Group 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.