Correlation Between Anghami Warrants and Marcus
Can any of the company-specific risk be diversified away by investing in both Anghami Warrants and Marcus 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 Marcus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anghami Warrants and Marcus, you can compare the effects of market volatilities on Anghami Warrants and Marcus 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 Marcus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anghami Warrants and Marcus.
Diversification Opportunities for Anghami Warrants and Marcus
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anghami and Marcus is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus 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 Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and Marcus go up and down completely randomly.
Pair Corralation between Anghami Warrants and Marcus
Assuming the 90 days horizon Anghami Warrants is expected to generate 10.17 times more return on investment than Marcus. However, Anghami Warrants is 10.17 times more volatile than Marcus. It trades about 0.11 of its potential returns per unit of risk. Marcus is currently generating about 0.44 per unit of risk. If you would invest 3.93 in Anghami Warrants on August 30, 2024 and sell it today you would earn a total of 0.07 from holding Anghami Warrants or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 47.83% |
| Values | Daily Returns |
Anghami Warrants vs. Marcus
Performance |
| Timeline |
| Anghami Warrants |
| Marcus |
Anghami Warrants and Marcus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anghami Warrants and Marcus
The main advantage of trading using opposite Anghami Warrants and Marcus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anghami Warrants position performs unexpectedly, Marcus 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 Marcus will offset losses from the drop in Marcus' long position.| Anghami Warrants vs. Anghami De | Anghami Warrants vs. Thayer Ventures Acquisition | Anghami Warrants vs. Cepton Inc | Anghami Warrants vs. Inspirato |
| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp Class |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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