Correlation Between Everbright Digital and Anghami Warrants

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

By analyzing existing cross correlation between Everbright Digital Holding and Anghami Warrants, you can compare the effects of market volatilities on Everbright Digital 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 Everbright Digital with a short position of Anghami Warrants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everbright Digital and Anghami Warrants.

Diversification Opportunities for Everbright Digital and Anghami Warrants

-0.29

Correlation Coefficient

Everbright Digital  Anghami Warrants

Very good diversification

The 3 months correlation between Everbright and Anghami is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Everbright Digital Holding and Anghami Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami Warrants and Everbright Digital 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 Everbright Digital Holding 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 Everbright Digital i.e., Everbright Digital and Anghami Warrants go up and down completely randomly.

Pair Corralation between Everbright Digital and Anghami Warrants

Given the investment horizon of 90 days Everbright Digital Holding is expected to under-perform the Anghami Warrants. But the stock apears to be less risky and, when comparing its historical volatility, Everbright Digital Holding is 1.14 times less risky than Anghami Warrants. The stock trades about -0.14 of its potential returns per unit of risk. The Anghami Warrants is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1.18  in Anghami Warrants on May 6, 2025 and sell it today you would lose (0.01) from holding Anghami Warrants or give up 0.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.48%
Values	Daily Returns

Everbright Digital Holding  vs.  Anghami Warrants

Everbright Digital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Everbright Digital Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Anghami Warrants

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Anghami Warrants are ranked lower than 5 (%) 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.

Pair Trading with Everbright Digital and Anghami Warrants

The main advantage of trading using opposite Everbright Digital and Anghami Warrants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everbright Digital 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 Everbright Digital Holding 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.

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.