Correlation Between Swvl Holdings and Blackline
Can any of the company-specific risk be diversified away by investing in both Swvl Holdings and Blackline 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 Swvl Holdings and Blackline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swvl Holdings Corp and Blackline, you can compare the effects of market volatilities on Swvl Holdings and Blackline 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 Swvl Holdings with a short position of Blackline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swvl Holdings and Blackline.
Diversification Opportunities for Swvl Holdings and Blackline
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Swvl and Blackline is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and Blackline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackline and Swvl Holdings 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 Swvl Holdings Corp are associated (or correlated) with Blackline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackline has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and Blackline go up and down completely randomly.
Pair Corralation between Swvl Holdings and Blackline
Assuming the 90 days horizon Swvl Holdings Corp is expected to under-perform the Blackline. In addition to that, Swvl Holdings is 1.92 times more volatile than Blackline. It trades about -0.32 of its total potential returns per unit of risk. Blackline is currently generating about 0.2 per unit of volatility. If you would invest 6,056 in Blackline on September 15, 2024 and sell it today you would earn a total of 424.00 from holding Blackline or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Swvl Holdings Corp vs. Blackline
Performance |
| Timeline |
| Swvl Holdings Corp |
| Blackline |
Swvl Holdings and Blackline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swvl Holdings and Blackline
The main advantage of trading using opposite Swvl Holdings and Blackline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swvl Holdings position performs unexpectedly, Blackline 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 Blackline will offset losses from the drop in Blackline's long position.The idea behind Swvl Holdings Corp and Blackline 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.| Blackline vs. Manhattan Associates | Blackline vs. Aspen Technology | Blackline vs. DoubleVerify Holdings | Blackline vs. ANSYS Inc |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |