Correlation Between Anghami Warrants and E W

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

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

Diversification Opportunities for Anghami Warrants and E W

-0.36

Correlation Coefficient

Anghami Warrants  E W

Very good diversification

The 3 months correlation between Anghami and SSP is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and E W Scripps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E W Scripps 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 E W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E W Scripps has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and E W go up and down completely randomly.

Pair Corralation between Anghami Warrants and E W

Assuming the 90 days horizon Anghami Warrants is expected to generate 23.4 times more return on investment than E W. However, Anghami Warrants is 23.4 times more volatile than E W Scripps. It trades about 0.15 of its potential returns per unit of risk. E W Scripps is currently generating about -0.04 per unit of risk. If you would invest  9.25  in Anghami Warrants on October 3, 2024 and sell it today you would lose (7.45) from holding Anghami Warrants or give up 80.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	65.17%
Values	Daily Returns

Anghami Warrants  vs.  E W Scripps

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 inconsistent technical indicators, Anghami Warrants showed solid returns over the last few months and may actually be approaching a breakup point.

E W Scripps

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in E W Scripps are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, E W may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Anghami Warrants and E W

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

The idea behind Anghami Warrants and E W Scripps 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.

Check out your portfolio center.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.