Correlation Between Salesforce and Swvl Holdings
Can any of the company-specific risk be diversified away by investing in both Salesforce 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 Salesforce and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salesforce and Swvl Holdings Corp, you can compare the effects of market volatilities on Salesforce 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 Salesforce with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salesforce and Swvl Holdings.
Diversification Opportunities for Salesforce and Swvl Holdings
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salesforce and Swvl is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Salesforce 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 Salesforce 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 Salesforce 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 Salesforce i.e., Salesforce and Swvl Holdings go up and down completely randomly.
Pair Corralation between Salesforce and Swvl Holdings
Considering the 90-day investment horizon Salesforce is expected to generate 0.37 times more return on investment than Swvl Holdings. However, Salesforce is 2.73 times less risky than Swvl Holdings. It trades about 0.23 of its potential returns per unit of risk. Swvl Holdings Corp is currently generating about -0.04 per unit of risk. If you would invest 29,801 in Salesforce on September 4, 2024 and sell it today you would earn a total of 3,300 from holding Salesforce or generate 11.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Salesforce vs. Swvl Holdings Corp
Performance |
| Timeline |
| Salesforce |
| Swvl Holdings Corp |
Salesforce and Swvl Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salesforce and Swvl Holdings
The main advantage of trading using opposite Salesforce and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salesforce 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.| Salesforce vs. Zoom Video Communications | Salesforce vs. C3 Ai Inc | Salesforce vs. Shopify | Salesforce vs. Workday |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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