Correlation Between Anghami De and Fathom Digital

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

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

Diversification Opportunities for Anghami De and Fathom Digital

0.56

Correlation Coefficient

Anghami De  Fathom Digital

Very weak diversification

The 3 months correlation between Anghami and Fathom is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Anghami De and Fathom Digital Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fathom Digital Manuf and Anghami De 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 De are associated (or correlated) with Fathom Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fathom Digital Manuf has no effect on the direction of Anghami De i.e., Anghami De and Fathom Digital go up and down completely randomly.

Pair Corralation between Anghami De and Fathom Digital

If you would invest  46.00  in Fathom Digital Manufacturing on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Fathom Digital Manufacturing or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Anghami De  vs.  Fathom Digital Manufacturing

Anghami De

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anghami De has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Fathom Digital Manuf

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fathom Digital Manufacturing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Fathom Digital is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Anghami De and Fathom Digital

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

The idea behind Anghami De and Fathom Digital Manufacturing 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.