Correlation Between ADC Therapeutics and Anghami Warrants
Can any of the company-specific risk be diversified away by investing in both ADC Therapeutics 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 ADC Therapeutics and Anghami Warrants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADC Therapeutics SA and Anghami Warrants, you can compare the effects of market volatilities on ADC Therapeutics 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 ADC Therapeutics with a short position of Anghami Warrants. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADC Therapeutics and Anghami Warrants.
Diversification Opportunities for ADC Therapeutics and Anghami Warrants
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ADC and Anghami is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding ADC Therapeutics SA and Anghami Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami Warrants and ADC Therapeutics 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 ADC Therapeutics SA 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 ADC Therapeutics i.e., ADC Therapeutics and Anghami Warrants go up and down completely randomly.
Pair Corralation between ADC Therapeutics and Anghami Warrants
Given the investment horizon of 90 days ADC Therapeutics is expected to generate 89.02 times less return on investment than Anghami Warrants. But when comparing it to its historical volatility, ADC Therapeutics SA is 16.3 times less risky than Anghami Warrants. It trades about 0.02 of its potential returns per unit of risk. Anghami Warrants is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7.10 in Anghami Warrants on August 30, 2024 and sell it today you would lose (3.10) from holding Anghami Warrants or give up 43.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 69.9% |
| Values | Daily Returns |
ADC Therapeutics SA vs. Anghami Warrants
Performance |
| Timeline |
| ADC Therapeutics |
| Anghami Warrants |
ADC Therapeutics and Anghami Warrants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADC Therapeutics and Anghami Warrants
The main advantage of trading using opposite ADC Therapeutics and Anghami Warrants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADC Therapeutics 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.| ADC Therapeutics vs. Passage Bio | ADC Therapeutics vs. Black Diamond Therapeutics | ADC Therapeutics vs. Alector | ADC Therapeutics vs. Century Therapeutics |
| Anghami Warrants vs. Anghami De | Anghami Warrants vs. Thayer Ventures Acquisition | Anghami Warrants vs. Cepton Inc | Anghami Warrants vs. Inspirato |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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