Correlation Between Thayer Ventures and Anghami De

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

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

Diversification Opportunities for Thayer Ventures and Anghami De

-0.07

Correlation Coefficient

Thayer Ventures  Anghami De

Good diversification

The 3 months correlation between Thayer and Anghami is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Thayer Ventures Acquisition and Anghami De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anghami De and Thayer Ventures 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 Thayer Ventures Acquisition 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 Thayer Ventures i.e., Thayer Ventures and Anghami De go up and down completely randomly.

Pair Corralation between Thayer Ventures and Anghami De

Assuming the 90 days horizon Thayer Ventures Acquisition is expected to generate 8.87 times more return on investment than Anghami De. However, Thayer Ventures is 8.87 times more volatile than Anghami De. It trades about 0.16 of its potential returns per unit of risk. Anghami De is currently generating about 0.11 per unit of risk. If you would invest  0.80  in Thayer Ventures Acquisition on March 5, 2024 and sell it today you would earn a total of  0.20  from holding Thayer Ventures Acquisition or generate 25.0% return on investment over 90 days.

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

Thayer Ventures Acquisition  vs.  Anghami De

Thayer Ventures Acqu

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Thayer Ventures Acquisition are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Thayer Ventures showed solid returns over the last few months and may actually be approaching a breakup point.

Anghami De

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Anghami De are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, Anghami De demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Thayer Ventures and Anghami De

The main advantage of trading using opposite Thayer Ventures and Anghami De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thayer Ventures 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 Thayer Ventures Acquisition 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.