Correlation Between Citigroup and Swvl Holdings
Can any of the company-specific risk be diversified away by investing in both Citigroup 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 Citigroup and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Swvl Holdings Corp, you can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Swvl Holdings.
Diversification Opportunities for Citigroup and Swvl Holdings
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Swvl is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup 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 Citigroup 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 Citigroup 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 Citigroup i.e., Citigroup and Swvl Holdings go up and down completely randomly.
Pair Corralation between Citigroup and Swvl Holdings
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.57 times less return on investment than Swvl Holdings. But when comparing it to its historical volatility, Citigroup is 4.54 times less risky than Swvl Holdings. It trades about 0.11 of its potential returns per unit of risk. Swvl Holdings Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 571.00 in Swvl Holdings Corp on August 28, 2024 and sell it today you would earn a total of 49.00 from holding Swvl Holdings Corp or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Swvl Holdings Corp
Performance |
| Timeline |
| Citigroup |
| Swvl Holdings Corp |
Citigroup and Swvl Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Swvl Holdings
The main advantage of trading using opposite Citigroup and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup 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 Citigroup 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |