Correlation Between Disney and Anghami De

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

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

Diversification Opportunities for Disney and Anghami De

-0.74

Correlation Coefficient

Disney  Anghami De

Pay attention - limited upside

The 3 months correlation between Disney and Anghami is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and Anghami De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami De and Disney 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 Walt Disney 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 Disney i.e., Disney and Anghami De go up and down completely randomly.

Pair Corralation between Disney and Anghami De

Considering the 90-day investment horizon Walt Disney is expected to generate 0.59 times more return on investment than Anghami De. However, Walt Disney is 1.7 times less risky than Anghami De. It trades about 0.52 of its potential returns per unit of risk. Anghami De is currently generating about -0.06 per unit of risk. If you would invest  9,579  in Walt Disney on September 4, 2024 and sell it today you would earn a total of  2,137  from holding Walt Disney or generate 22.31% return on investment over 90 days.

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

Walt Disney  vs.  Anghami De

Walt Disney

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Walt Disney are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Disney unveiled 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 Disney and Anghami De

The main advantage of trading using opposite Disney and Anghami De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney 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 Walt Disney 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 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.