Correlation Between Jfrog and Swvl Holdings
Can any of the company-specific risk be diversified away by investing in both Jfrog 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 Jfrog and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jfrog and Swvl Holdings Corp, you can compare the effects of market volatilities on Jfrog 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 Jfrog with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jfrog and Swvl Holdings.
Diversification Opportunities for Jfrog and Swvl Holdings
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jfrog and Swvl is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jfrog 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 Jfrog 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 Jfrog 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 Jfrog i.e., Jfrog and Swvl Holdings go up and down completely randomly.
Pair Corralation between Jfrog and Swvl Holdings
Given the investment horizon of 90 days Jfrog is expected to generate 15.01 times less return on investment than Swvl Holdings. But when comparing it to its historical volatility, Jfrog is 4.12 times less risky than Swvl Holdings. It trades about 0.1 of its potential returns per unit of risk. Swvl Holdings Corp is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 346.00 in Swvl Holdings Corp on September 3, 2024 and sell it today you would earn a total of 300.00 from holding Swvl Holdings Corp or generate 86.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jfrog vs. Swvl Holdings Corp
Performance |
| Timeline |
| Jfrog |
| Swvl Holdings Corp |
Jfrog and Swvl Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jfrog and Swvl Holdings
The main advantage of trading using opposite Jfrog and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jfrog 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 Jfrog 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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