Correlation Between Anghami Warrants and Cepton
Can any of the company-specific risk be diversified away by investing in both Anghami Warrants and Cepton 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 Cepton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anghami Warrants and Cepton Inc, you can compare the effects of market volatilities on Anghami Warrants and Cepton 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 Cepton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anghami Warrants and Cepton.
Diversification Opportunities for Anghami Warrants and Cepton
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anghami and Cepton is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and Cepton Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cepton Inc 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 Cepton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cepton Inc has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and Cepton go up and down completely randomly.
Pair Corralation between Anghami Warrants and Cepton
Assuming the 90 days horizon Anghami Warrants is expected to generate 2.65 times more return on investment than Cepton. However, Anghami Warrants is 2.65 times more volatile than Cepton Inc. It trades about 0.22 of its potential returns per unit of risk. Cepton Inc is currently generating about -0.09 per unit of risk. If you would invest 2.00 in Anghami Warrants on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Anghami Warrants or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Anghami Warrants vs. Cepton Inc
Performance |
| Timeline |
| Anghami Warrants |
| Cepton Inc |
Anghami Warrants and Cepton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anghami Warrants and Cepton
The main advantage of trading using opposite Anghami Warrants and Cepton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anghami Warrants position performs unexpectedly, Cepton 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 Cepton will offset losses from the drop in Cepton's long position.| Anghami Warrants vs. Anghami De | Anghami Warrants vs. Thayer Ventures Acquisition | Anghami Warrants vs. Cepton Inc | Anghami Warrants vs. Inspirato |
| Cepton vs. Cepton Inc | Cepton vs. Thayer Ventures Acquisition | Cepton vs. Anghami Warrants | Cepton 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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