Correlation Between Anghami Warrants and VS Media

Can any of the company-specific risk be diversified away by investing in both Anghami Warrants and VS Media 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 VS Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Anghami Warrants and VS Media Holdings, you can compare the effects of market volatilities on Anghami Warrants and VS Media 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 VS Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anghami Warrants and VS Media.

Diversification Opportunities for Anghami Warrants and VS Media

0.07

Correlation Coefficient

Anghami Warrants  VS Media

Significant diversification

The 3 months correlation between Anghami and VSME is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and VS Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VS Media 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 VS Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VS Media Holdings has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and VS Media go up and down completely randomly.

Pair Corralation between Anghami Warrants and VS Media

Assuming the 90 days horizon Anghami Warrants is expected to generate 2.06 times more return on investment than VS Media. However, Anghami Warrants is 2.06 times more volatile than VS Media Holdings. It trades about 0.13 of its potential returns per unit of risk. VS Media Holdings is currently generating about 0.19 per unit of risk. If you would invest  1.13  in Anghami Warrants on May 7, 2025 and sell it today you would earn a total of  0.62  from holding Anghami Warrants or generate 54.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	85.25%
Values	Daily Returns

Anghami Warrants  vs.  VS Media Holdings

Anghami Warrants

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Anghami Warrants are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent technical indicators, Anghami Warrants showed solid returns over the last few months and may actually be approaching a breakup point.

VS Media Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VS Media Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, VS Media exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Anghami Warrants and VS Media

The main advantage of trading using opposite Anghami Warrants and VS Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anghami Warrants position performs unexpectedly, VS Media 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 VS Media will offset losses from the drop in VS Media's long position.

The idea behind Anghami Warrants and VS Media Holdings 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.