Correlation Between Major League and Anghami Warrants

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

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

Diversification Opportunities for Major League and Anghami Warrants

0.0

Correlation Coefficient

Major League  Anghami Warrants

Pay attention - limited upside

The 3 months correlation between Major and Anghami is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Major League Football and Anghami Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami Warrants and Major League 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 Major League Football 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 Major League i.e., Major League and Anghami Warrants go up and down completely randomly.

Pair Corralation between Major League and Anghami Warrants

If you would invest  8.28  in Anghami Warrants on December 3, 2024 and sell it today you would lose (6.86) from holding Anghami Warrants or give up 82.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Major League Football  vs.  Anghami Warrants

Major League Football

Risk-Adjusted Performance

Very Weak

Over the last 90 days Major League Football has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Major League is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

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 showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Major League and Anghami Warrants

The main advantage of trading using opposite Major League and Anghami Warrants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Major League 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 Major League Football 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.

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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.