Correlation Between Scienjoy Holding and Anghami Warrants

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

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

Diversification Opportunities for Scienjoy Holding and Anghami Warrants

0.21

Correlation Coefficient

Scienjoy Holding  Anghami Warrants

Modest diversification

The 3 months correlation between Scienjoy and Anghami is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Scienjoy Holding Corp and Anghami Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami Warrants and Scienjoy Holding 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 Scienjoy Holding Corp 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 Scienjoy Holding i.e., Scienjoy Holding and Anghami Warrants go up and down completely randomly.

Pair Corralation between Scienjoy Holding and Anghami Warrants

Allowing for the 90-day total investment horizon Scienjoy Holding is expected to generate 650.66 times less return on investment than Anghami Warrants. But when comparing it to its historical volatility, Scienjoy Holding Corp is 31.7 times less risky than Anghami Warrants. It trades about 0.01 of its potential returns per unit of risk. Anghami Warrants is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  2.64  in Anghami Warrants on August 30, 2024 and sell it today you would earn a total of  1.36  from holding Anghami Warrants or generate 51.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	52.38%
Values	Daily Returns

Scienjoy Holding Corp  vs.  Anghami Warrants

Scienjoy Holding Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Scienjoy Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady forward-looking indicators, Scienjoy Holding is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Anghami Warrants

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Anghami Warrants are ranked lower than 14 (%) 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 Scienjoy Holding and Anghami Warrants

The main advantage of trading using opposite Scienjoy Holding and Anghami Warrants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scienjoy Holding 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 Scienjoy Holding Corp 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.