Correlation Between Visa and Anghami Warrants
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and Anghami Warrants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Anghami Warrants, you can compare the effects of market volatilities on Visa 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 Visa with a short position of Anghami Warrants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Anghami Warrants.
Diversification Opportunities for Visa and Anghami Warrants
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Visa and Anghami is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Anghami Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami Warrants and Visa 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 Visa Class A 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 Visa i.e., Visa and Anghami Warrants go up and down completely randomly.
Pair Corralation between Visa and Anghami Warrants
Taking into account the 90-day investment horizon Visa is expected to generate 331.67 times less return on investment than Anghami Warrants. But when comparing it to its historical volatility, Visa Class A is 150.54 times less risky than Anghami Warrants. It trades about 0.08 of its potential returns per unit of risk. Anghami Warrants is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2.10 in Anghami Warrants on September 5, 2024 and sell it today you would earn a total of 1.90 from holding Anghami Warrants or generate 90.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 68.8% |
| Values | Daily Returns |
Visa Class A vs. Anghami Warrants
Performance |
| Timeline |
| Visa Class A |
| Anghami Warrants |
Visa and Anghami Warrants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Anghami Warrants
The main advantage of trading using opposite Visa and Anghami Warrants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Anghami Warrants vs. Liberty Media | Anghami Warrants vs. Atlanta Braves Holdings, | Anghami Warrants vs. News Corp B | Anghami Warrants vs. News Corp A |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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