Correlation Between American Picture and Anghami De

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

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

Diversification Opportunities for American Picture and Anghami De

-0.47

Correlation Coefficient

American Picture  Anghami De

Very good diversification

The 3 months correlation between American and Anghami is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding American Picture House and Anghami De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami De and American Picture 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 American Picture House are associated (or correlated) with Anghami De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anghami De has no effect on the direction of American Picture i.e., American Picture and Anghami De go up and down completely randomly.

Pair Corralation between American Picture and Anghami De

Given the investment horizon of 90 days American Picture House is expected to generate 1.54 times more return on investment than Anghami De. However, American Picture is 1.54 times more volatile than Anghami De. It trades about 0.05 of its potential returns per unit of risk. Anghami De is currently generating about -0.06 per unit of risk. If you would invest  23.00  in American Picture House on September 3, 2024 and sell it today you would earn a total of  2.00  from holding American Picture House or generate 8.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

American Picture House  vs.  Anghami De

American Picture House

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in American Picture House are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical indicators, American Picture reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with American Picture and Anghami De

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

The idea behind American Picture House and Anghami De 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.