Correlation Between Swvl Holdings and Nogin
Can any of the company-specific risk be diversified away by investing in both Swvl Holdings and Nogin 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 Nogin 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 Nogin Inc, you can compare the effects of market volatilities on Swvl Holdings and Nogin 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 Nogin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swvl Holdings and Nogin.
Diversification Opportunities for Swvl Holdings and Nogin
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Swvl and Nogin is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and Nogin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nogin Inc 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 Nogin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nogin Inc has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and Nogin go up and down completely randomly.
Pair Corralation between Swvl Holdings and Nogin
Assuming the 90 days horizon Swvl Holdings Corp is expected to generate 12.17 times more return on investment than Nogin. However, Swvl Holdings is 12.17 times more volatile than Nogin Inc. It trades about 0.07 of its potential returns per unit of risk. Nogin Inc is currently generating about -0.2 per unit of risk. If you would invest 1.65 in Swvl Holdings Corp on September 1, 2024 and sell it today you would earn a total of 0.03 from holding Swvl Holdings Corp or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 8.61% |
| Values | Daily Returns |
Swvl Holdings Corp vs. Nogin Inc
Performance |
| Timeline |
| Swvl Holdings Corp |
| Nogin Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Swvl Holdings and Nogin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swvl Holdings and Nogin
The main advantage of trading using opposite Swvl Holdings and Nogin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swvl Holdings position performs unexpectedly, Nogin 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 Nogin will offset losses from the drop in Nogin's long position.| Swvl Holdings vs. Swvl Holdings Corp | Swvl Holdings vs. SoundHound AI | Swvl Holdings vs. Dave Warrants | Swvl Holdings vs. Aquagold International |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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