Correlation Between Anghami Warrants and Imax Corp
Can any of the company-specific risk be diversified away by investing in both Anghami Warrants and Imax Corp 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 Imax Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anghami Warrants and Imax Corp, you can compare the effects of market volatilities on Anghami Warrants and Imax Corp 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 Imax Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anghami Warrants and Imax Corp.
Diversification Opportunities for Anghami Warrants and Imax Corp
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anghami and Imax is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and Imax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imax Corp 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 Imax Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imax Corp has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and Imax Corp go up and down completely randomly.
Pair Corralation between Anghami Warrants and Imax Corp
Assuming the 90 days horizon Anghami Warrants is expected to generate 71.9 times more return on investment than Imax Corp. However, Anghami Warrants is 71.9 times more volatile than Imax Corp. It trades about 0.16 of its potential returns per unit of risk. Imax Corp is currently generating about 0.09 per unit of risk. If you would invest 6.00 in Anghami Warrants on August 26, 2024 and sell it today you would lose (3.89) from holding Anghami Warrants or give up 64.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 63.45% |
| Values | Daily Returns |
Anghami Warrants vs. Imax Corp
Performance |
| Timeline |
| Anghami Warrants |
| Imax Corp |
Anghami Warrants and Imax Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anghami Warrants and Imax Corp
The main advantage of trading using opposite Anghami Warrants and Imax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anghami Warrants position performs unexpectedly, Imax Corp 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 Imax Corp will offset losses from the drop in Imax Corp'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 |
| Imax Corp vs. ADTRAN Inc | Imax Corp vs. Belden Inc | Imax Corp vs. ADC Therapeutics SA | Imax Corp vs. Comtech Telecommunications Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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