Correlation Between Anghami Warrants and SNM Gobal
Can any of the company-specific risk be diversified away by investing in both Anghami Warrants and SNM Gobal 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 SNM Gobal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anghami Warrants and SNM Gobal Holdings, you can compare the effects of market volatilities on Anghami Warrants and SNM Gobal 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 SNM Gobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anghami Warrants and SNM Gobal.
Diversification Opportunities for Anghami Warrants and SNM Gobal
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anghami and SNM is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and SNM Gobal Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNM Gobal Holdings 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 SNM Gobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNM Gobal Holdings has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and SNM Gobal go up and down completely randomly.
Pair Corralation between Anghami Warrants and SNM Gobal
Assuming the 90 days horizon Anghami Warrants is expected to generate 2267.57 times less return on investment than SNM Gobal. But when comparing it to its historical volatility, Anghami Warrants is 15.98 times less risky than SNM Gobal. It trades about 0.0 of its potential returns per unit of risk. SNM Gobal Holdings is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 0.01 in SNM Gobal Holdings on November 1, 2024 and sell it today you would lose (0.01) from holding SNM Gobal Holdings or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Anghami Warrants vs. SNM Gobal Holdings
Performance |
| Timeline |
| Anghami Warrants |
| SNM Gobal Holdings |
Anghami Warrants and SNM Gobal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anghami Warrants and SNM Gobal
The main advantage of trading using opposite Anghami Warrants and SNM Gobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anghami Warrants position performs unexpectedly, SNM Gobal 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 SNM Gobal will offset losses from the drop in SNM Gobal's long position.| Anghami Warrants vs. Anghami De | Anghami Warrants vs. Thayer Ventures Acquisition | 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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