Correlation Between Anghami Warrants and ZW Data

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

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

Diversification Opportunities for Anghami Warrants and ZW Data

-0.68

Correlation Coefficient

Anghami Warrants  ZW Data

Excellent diversification

The 3 months correlation between Anghami and CNET is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Anghami Warrants and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action 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 ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of Anghami Warrants i.e., Anghami Warrants and ZW Data go up and down completely randomly.

Pair Corralation between Anghami Warrants and ZW Data

Assuming the 90 days horizon Anghami Warrants is expected to generate 8.26 times more return on investment than ZW Data. However, Anghami Warrants is 8.26 times more volatile than ZW Data Action. It trades about 0.06 of its potential returns per unit of risk. ZW Data Action is currently generating about -0.14 per unit of risk. If you would invest  3.50  in Anghami Warrants on September 12, 2024 and sell it today you would lose (0.72) from holding Anghami Warrants or give up 20.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	63.64%
Values	Daily Returns

Anghami Warrants  vs.  ZW Data Action

Anghami Warrants

Risk-Adjusted Performance

4 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Anghami Warrants are ranked lower than 4 (%) 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.

ZW Data Action

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ZW Data Action has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, ZW Data is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Anghami Warrants and ZW Data

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

The idea behind Anghami Warrants and ZW Data Action 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.