Correlation Between Anghami Warrants and WiMi Hologram

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

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

Diversification Opportunities for Anghami Warrants and WiMi Hologram

0.26

Correlation Coefficient

Anghami Warrants  WiMi Hologram

Modest diversification

The 3 months correlation between Anghami and WiMi is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and WiMi Hologram Cloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WiMi Hologram Cloud 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 WiMi Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WiMi Hologram Cloud has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and WiMi Hologram go up and down completely randomly.

Pair Corralation between Anghami Warrants and WiMi Hologram

Assuming the 90 days horizon Anghami Warrants is expected to generate 33.31 times more return on investment than WiMi Hologram. However, Anghami Warrants is 33.31 times more volatile than WiMi Hologram Cloud. It trades about 0.24 of its potential returns per unit of risk. WiMi Hologram Cloud is currently generating about 0.08 per unit of risk. If you would invest  2.34  in Anghami Warrants on July 9, 2024 and sell it today you would lose (0.34) from holding Anghami Warrants or give up 14.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	70.31%
Values	Daily Returns

Anghami Warrants  vs.  WiMi Hologram Cloud

Anghami Warrants

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Anghami Warrants are ranked lower than 18 (%) 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.

WiMi Hologram Cloud

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in WiMi Hologram Cloud are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak primary indicators, WiMi Hologram demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Anghami Warrants and WiMi Hologram

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

The idea behind Anghami Warrants and WiMi Hologram Cloud 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.