Correlation Between Dow Jones and Swvl Holdings
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Swvl Holdings Corp, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Swvl Holdings.
Diversification Opportunities for Dow Jones and Swvl Holdings
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dow and Swvl is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial 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 Dow Jones 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 Dow Jones Industrial 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 Dow Jones i.e., Dow Jones and Swvl Holdings go up and down completely randomly.
Pair Corralation between Dow Jones and Swvl Holdings
Assuming the 90 days trading horizon Dow Jones is expected to generate 4.17 times less return on investment than Swvl Holdings. But when comparing it to its historical volatility, Dow Jones Industrial is 11.69 times less risky than Swvl Holdings. It trades about 0.18 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Swvl Holdings Corp
Performance |
| Timeline |
Dow Jones and Swvl Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Swvl Holdings Corp
Pair trading matchups for Swvl Holdings
Pair Trading with Dow Jones and Swvl Holdings
The main advantage of trading using opposite Dow Jones and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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