Correlation Between Bentley Systems and Swvl Holdings
Can any of the company-specific risk be diversified away by investing in both Bentley Systems and Swvl Holdings 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 Bentley Systems and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bentley Systems and Swvl Holdings Corp, you can compare the effects of market volatilities on Bentley Systems and Swvl Holdings 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 Bentley Systems with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bentley Systems and Swvl Holdings.
Diversification Opportunities for Bentley Systems and Swvl Holdings
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bentley and Swvl is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bentley Systems and Swvl Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swvl Holdings Corp and Bentley Systems 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 Bentley Systems are associated (or correlated) with Swvl Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swvl Holdings Corp has no effect on the direction of Bentley Systems i.e., Bentley Systems and Swvl Holdings go up and down completely randomly.
Pair Corralation between Bentley Systems and Swvl Holdings
Considering the 90-day investment horizon Bentley Systems is expected to under-perform the Swvl Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Bentley Systems is 5.21 times less risky than Swvl Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The Swvl Holdings Corp is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 277.00 in Swvl Holdings Corp on August 28, 2024 and sell it today you would earn a total of 343.00 from holding Swvl Holdings Corp or generate 123.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bentley Systems vs. Swvl Holdings Corp
Performance |
| Timeline |
| Bentley Systems |
| Swvl Holdings Corp |
Bentley Systems and Swvl Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bentley Systems and Swvl Holdings
The main advantage of trading using opposite Bentley Systems and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bentley Systems position performs unexpectedly, Swvl Holdings 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 Swvl Holdings will offset losses from the drop in Swvl Holdings' long position.The idea behind Bentley Systems and Swvl Holdings Corp 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.| Swvl Holdings vs. OLB Group | Swvl Holdings vs. Friendable | Swvl Holdings vs. Enfusion | Swvl Holdings vs. eGain |
Check out your portfolio center.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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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