Correlation Between Gorilla Technology and Swvl Holdings
Can any of the company-specific risk be diversified away by investing in both Gorilla Technology 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 Gorilla Technology and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gorilla Technology Group and Swvl Holdings Corp, you can compare the effects of market volatilities on Gorilla Technology 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 Gorilla Technology with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gorilla Technology and Swvl Holdings.
Diversification Opportunities for Gorilla Technology and Swvl Holdings
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gorilla and Swvl is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gorilla Technology Group 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 Gorilla Technology 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 Gorilla Technology Group 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 Gorilla Technology i.e., Gorilla Technology and Swvl Holdings go up and down completely randomly.
Pair Corralation between Gorilla Technology and Swvl Holdings
Assuming the 90 days horizon Gorilla Technology is expected to generate 7.66 times less return on investment than Swvl Holdings. But when comparing it to its historical volatility, Gorilla Technology Group is 4.28 times less risky than Swvl Holdings. It trades about 0.04 of its potential returns per unit of risk. Swvl Holdings Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.53 in Swvl Holdings Corp on August 31, 2024 and sell it today you would earn a total of 0.15 from holding Swvl Holdings Corp or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.1% |
| Values | Daily Returns |
Gorilla Technology Group vs. Swvl Holdings Corp
Performance |
| Timeline |
| Gorilla Technology |
| Swvl Holdings Corp |
Gorilla Technology and Swvl Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gorilla Technology and Swvl Holdings
The main advantage of trading using opposite Gorilla Technology and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gorilla Technology 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 Gorilla Technology Group 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.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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