Correlation Between Liberty Media and Anghami Warrants
Can any of the company-specific risk be diversified away by investing in both Liberty Media 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 Liberty Media and Anghami Warrants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Media and Anghami Warrants, you can compare the effects of market volatilities on Liberty Media 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 Liberty Media with a short position of Anghami Warrants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Media and Anghami Warrants.
Diversification Opportunities for Liberty Media and Anghami Warrants
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Liberty and Anghami is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Media and Anghami Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami Warrants and Liberty Media 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 Liberty Media 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 Liberty Media i.e., Liberty Media and Anghami Warrants go up and down completely randomly.
Pair Corralation between Liberty Media and Anghami Warrants
Assuming the 90 days horizon Liberty Media is expected to generate 7.51 times less return on investment than Anghami Warrants. But when comparing it to its historical volatility, Liberty Media is 14.35 times less risky than Anghami Warrants. It trades about 0.22 of its potential returns per unit of risk. Anghami Warrants is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3.88 in Anghami Warrants on September 5, 2024 and sell it today you would earn a total of 0.12 from holding Anghami Warrants or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Liberty Media vs. Anghami Warrants
Performance |
| Timeline |
| Liberty Media |
| Anghami Warrants |
Liberty Media and Anghami Warrants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Media and Anghami Warrants
The main advantage of trading using opposite Liberty Media and Anghami Warrants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Media 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.| Liberty Media vs. News Corp B | Liberty Media vs. News Corp A | Liberty Media vs. Atlanta Braves Holdings, | Liberty Media vs. Liberty Media |
| Anghami Warrants vs. News Corp B | Anghami Warrants vs. News Corp A | Anghami Warrants vs. Atlanta Braves Holdings, | Anghami Warrants vs. Liberty Media |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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