Correlation Between Swvl Holdings and MondayCom
Can any of the company-specific risk be diversified away by investing in both Swvl Holdings and MondayCom 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 MondayCom 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 MondayCom, you can compare the effects of market volatilities on Swvl Holdings and MondayCom 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 MondayCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swvl Holdings and MondayCom.
Diversification Opportunities for Swvl Holdings and MondayCom
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Swvl and MondayCom is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and MondayCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MondayCom 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 MondayCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MondayCom has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and MondayCom go up and down completely randomly.
Pair Corralation between Swvl Holdings and MondayCom
Assuming the 90 days horizon Swvl Holdings Corp is expected to under-perform the MondayCom. In addition to that, Swvl Holdings is 1.09 times more volatile than MondayCom. It trades about -0.12 of its total potential returns per unit of risk. MondayCom is currently generating about 0.17 per unit of volatility. If you would invest 24,833 in MondayCom on December 4, 2024 and sell it today you would earn a total of 4,844 from holding MondayCom or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 70.0% |
| Values | Daily Returns |
Swvl Holdings Corp vs. MondayCom
Performance |
| Timeline |
| Swvl Holdings Corp |
| MondayCom |
Swvl Holdings and MondayCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swvl Holdings and MondayCom
The main advantage of trading using opposite Swvl Holdings and MondayCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swvl Holdings position performs unexpectedly, MondayCom 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 MondayCom will offset losses from the drop in MondayCom's long position.The idea behind Swvl Holdings Corp and MondayCom 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.| MondayCom vs. Datadog | MondayCom vs. Gitlab Inc | MondayCom vs. ZoomInfo Technologies | MondayCom vs. HubSpot |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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