Correlation Between Swvl Holdings and Oneconnect Financial
Can any of the company-specific risk be diversified away by investing in both Swvl Holdings and Oneconnect Financial 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 Oneconnect Financial 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 Oneconnect Financial Technology, you can compare the effects of market volatilities on Swvl Holdings and Oneconnect Financial 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 Oneconnect Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swvl Holdings and Oneconnect Financial.
Diversification Opportunities for Swvl Holdings and Oneconnect Financial
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Swvl and Oneconnect is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and Oneconnect Financial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneconnect Financial 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 Oneconnect Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneconnect Financial has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and Oneconnect Financial go up and down completely randomly.
Pair Corralation between Swvl Holdings and Oneconnect Financial
Assuming the 90 days horizon Swvl Holdings Corp is expected to under-perform the Oneconnect Financial. But the stock apears to be less risky and, when comparing its historical volatility, Swvl Holdings Corp is 1.25 times less risky than Oneconnect Financial. The stock trades about -0.38 of its potential returns per unit of risk. The Oneconnect Financial Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 215.00 in Oneconnect Financial Technology on September 19, 2024 and sell it today you would earn a total of 30.00 from holding Oneconnect Financial Technology or generate 13.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Swvl Holdings Corp vs. Oneconnect Financial Technolog
Performance |
| Timeline |
| Swvl Holdings Corp |
| Oneconnect Financial |
Swvl Holdings and Oneconnect Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swvl Holdings and Oneconnect Financial
The main advantage of trading using opposite Swvl Holdings and Oneconnect Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swvl Holdings position performs unexpectedly, Oneconnect Financial 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 Oneconnect Financial will offset losses from the drop in Oneconnect Financial's long position.| Swvl Holdings vs. Dave Warrants | Swvl Holdings vs. Aquagold International | Swvl Holdings vs. Morningstar Unconstrained Allocation | Swvl Holdings vs. Thrivent High Yield |
| Oneconnect Financial vs. Swvl Holdings Corp | Oneconnect Financial vs. Guardforce AI Co | Oneconnect Financial vs. Thayer Ventures Acquisition |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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