Correlation Between SentinelOne and Swvl Holdings
Can any of the company-specific risk be diversified away by investing in both SentinelOne 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 SentinelOne and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Swvl Holdings Corp, you can compare the effects of market volatilities on SentinelOne 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 SentinelOne with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Swvl Holdings.
Diversification Opportunities for SentinelOne and Swvl Holdings
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SentinelOne and Swvl is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne 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 SentinelOne 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 SentinelOne 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 SentinelOne i.e., SentinelOne and Swvl Holdings go up and down completely randomly.
Pair Corralation between SentinelOne and Swvl Holdings
Taking into account the 90-day investment horizon SentinelOne is expected to generate 8.76 times less return on investment than Swvl Holdings. But when comparing it to its historical volatility, SentinelOne is 3.89 times less risky than Swvl Holdings. It trades about 0.17 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 334.00 in Swvl Holdings Corp on September 1, 2024 and sell it today you would earn a total of 312.00 from holding Swvl Holdings Corp or generate 93.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Swvl Holdings Corp
Performance |
| Timeline |
| SentinelOne |
| Swvl Holdings Corp |
SentinelOne and Swvl Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Swvl Holdings
The main advantage of trading using opposite SentinelOne and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne 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.| SentinelOne vs. Palo Alto Networks | SentinelOne vs. Uipath Inc | SentinelOne vs. Block Inc | SentinelOne vs. Adobe Systems Incorporated |
| Swvl Holdings vs. Ke Holdings | Swvl Holdings vs. nCino Inc | Swvl Holdings vs. Kingsoft Cloud Holdings | Swvl Holdings vs. Jfrog |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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