Correlation Between Anghami Warrants and Cumulus Media
Can any of the company-specific risk be diversified away by investing in both Anghami Warrants and Cumulus Media 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 Cumulus Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anghami Warrants and Cumulus Media Class, you can compare the effects of market volatilities on Anghami Warrants and Cumulus Media 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 Cumulus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anghami Warrants and Cumulus Media.
Diversification Opportunities for Anghami Warrants and Cumulus Media
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anghami and Cumulus is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class 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 Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and Cumulus Media go up and down completely randomly.
Pair Corralation between Anghami Warrants and Cumulus Media
Assuming the 90 days horizon Anghami Warrants is expected to generate 26.46 times more return on investment than Cumulus Media. However, Anghami Warrants is 26.46 times more volatile than Cumulus Media Class. It trades about 0.12 of its potential returns per unit of risk. Cumulus Media Class is currently generating about -0.09 per unit of risk. If you would invest 7.97 in Anghami Warrants on August 27, 2024 and sell it today you would lose (5.86) from holding Anghami Warrants or give up 73.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 69.56% |
| Values | Daily Returns |
Anghami Warrants vs. Cumulus Media Class
Performance |
| Timeline |
| Anghami Warrants |
| Cumulus Media Class |
Anghami Warrants and Cumulus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anghami Warrants and Cumulus Media
The main advantage of trading using opposite Anghami Warrants and Cumulus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anghami Warrants position performs unexpectedly, Cumulus Media 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 Cumulus Media will offset losses from the drop in Cumulus Media's long position.| Anghami Warrants vs. ADTRAN Inc | Anghami Warrants vs. Belden Inc | Anghami Warrants vs. ADC Therapeutics SA | Anghami Warrants vs. Comtech Telecommunications Corp |
| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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