Correlation Between Cepton and Anghami Warrants
Can any of the company-specific risk be diversified away by investing in both Cepton and Anghami Warrants 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 Cepton and Anghami Warrants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cepton Inc and Anghami Warrants, you can compare the effects of market volatilities on Cepton and Anghami Warrants 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 Cepton with a short position of Anghami Warrants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cepton and Anghami Warrants.
Diversification Opportunities for Cepton and Anghami Warrants
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cepton and Anghami is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cepton Inc and Anghami Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami Warrants and Cepton 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 Cepton Inc are associated (or correlated) with Anghami Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anghami Warrants has no effect on the direction of Cepton i.e., Cepton and Anghami Warrants go up and down completely randomly.
Pair Corralation between Cepton and Anghami Warrants
Given the investment horizon of 90 days Cepton Inc is expected to under-perform the Anghami Warrants. But the stock apears to be less risky and, when comparing its historical volatility, Cepton Inc is 76.73 times less risky than Anghami Warrants. The stock trades about -0.07 of its potential returns per unit of risk. The Anghami Warrants is currently generating about 0.11 of returns per unit of risk over similar time horizon. 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 | Very Weak |
| Accuracy | 52.17% |
| Values | Daily Returns |
Cepton Inc vs. Anghami Warrants
Performance |
| Timeline |
| Cepton Inc |
| Anghami Warrants |
Cepton and Anghami Warrants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cepton and Anghami Warrants
The main advantage of trading using opposite Cepton and Anghami Warrants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cepton position performs unexpectedly, Anghami Warrants 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 Anghami Warrants will offset losses from the drop in Anghami Warrants' long position.The idea behind Cepton Inc and Anghami Warrants pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Anghami Warrants vs. Anghami De | Anghami Warrants vs. Thayer Ventures Acquisition | Anghami Warrants vs. Cepton Inc | 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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