Correlation Between NYSE Composite and Swvl Holdings
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Swvl Holdings Corp, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Swvl Holdings.
Diversification Opportunities for NYSE Composite and Swvl Holdings
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Swvl is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Swvl Holdings go up and down completely randomly.
Pair Corralation between NYSE Composite and Swvl Holdings
Assuming the 90 days trading horizon NYSE Composite is expected to generate 19.77 times less return on investment than Swvl Holdings. But when comparing it to its historical volatility, NYSE Composite is 14.21 times less risky than Swvl Holdings. It trades about 0.24 of its potential returns per unit of risk. Swvl Holdings Corp is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 347.00 in Swvl Holdings Corp on August 28, 2024 and sell it today you would earn a total of 273.00 from holding Swvl Holdings Corp or generate 78.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Swvl Holdings Corp
Performance |
| Timeline |
NYSE Composite and Swvl Holdings Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Swvl Holdings Corp
Pair trading matchups for Swvl Holdings
Pair Trading with NYSE Composite and Swvl Holdings
The main advantage of trading using opposite NYSE Composite and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Vita Coco | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Toro Co |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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