Correlation Between American Picture and Anghami Warrants

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

By analyzing existing cross correlation between American Picture House and Anghami Warrants, you can compare the effects of market volatilities on American Picture and Anghami Warrants 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 American Picture with a short position of Anghami Warrants. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Picture and Anghami Warrants.

Diversification Opportunities for American Picture and Anghami Warrants

-0.25

Correlation Coefficient

American Picture  Anghami Warrants

Very good diversification

The 3 months correlation between American and Anghami is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding American Picture House and Anghami Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami Warrants and American Picture 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 American Picture House are associated (or correlated) with Anghami Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anghami Warrants has no effect on the direction of American Picture i.e., American Picture and Anghami Warrants go up and down completely randomly.

Pair Corralation between American Picture and Anghami Warrants

Given the investment horizon of 90 days American Picture House is expected to generate 0.33 times more return on investment than Anghami Warrants. However, American Picture House is 3.01 times less risky than Anghami Warrants. It trades about 0.04 of its potential returns per unit of risk. Anghami Warrants is currently generating about -0.02 per unit of risk. If you would invest  25.00  in American Picture House on December 1, 2024 and sell it today you would earn a total of  1.00  from holding American Picture House or generate 4.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.25%
Values	Daily Returns

American Picture House  vs.  Anghami Warrants

American Picture House

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in American Picture House are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical indicators, American Picture reported solid returns over the last few months and may actually be approaching a breakup point.

Anghami Warrants

Risk-Adjusted Performance

Very Weak

Over the last 90 days Anghami Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with American Picture and Anghami Warrants

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

The idea behind American Picture House and Anghami Warrants 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.