Correlation Between Waldencast Acquisition and Swvl Holdings
Can any of the company-specific risk be diversified away by investing in both Waldencast Acquisition 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 Waldencast Acquisition and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waldencast Acquisition Corp and Swvl Holdings Corp, you can compare the effects of market volatilities on Waldencast Acquisition 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 Waldencast Acquisition with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waldencast Acquisition and Swvl Holdings.
Diversification Opportunities for Waldencast Acquisition and Swvl Holdings
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Waldencast and Swvl is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Waldencast Acquisition Corp 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 Waldencast Acquisition 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 Waldencast Acquisition Corp 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 Waldencast Acquisition i.e., Waldencast Acquisition and Swvl Holdings go up and down completely randomly.
Pair Corralation between Waldencast Acquisition and Swvl Holdings
Given the investment horizon of 90 days Waldencast Acquisition Corp is expected to under-perform the Swvl Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Waldencast Acquisition Corp is 2.23 times less risky than Swvl Holdings. The stock trades about -0.07 of its potential returns per unit of risk. The Swvl Holdings Corp is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 277.00 in Swvl Holdings Corp on August 28, 2024 and sell it today you would earn a total of 343.00 from holding Swvl Holdings Corp or generate 123.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Waldencast Acquisition Corp vs. Swvl Holdings Corp
Performance |
| Timeline |
| Waldencast Acquisition |
| Swvl Holdings Corp |
Waldencast Acquisition and Swvl Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Waldencast Acquisition and Swvl Holdings
The main advantage of trading using opposite Waldencast Acquisition and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waldencast Acquisition 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.| Waldencast Acquisition vs. Where Food Comes | Waldencast Acquisition vs. VTEX | Waldencast Acquisition vs. Vertex | Waldencast Acquisition vs. BASE Inc |
| Swvl Holdings vs. OLB Group | Swvl Holdings vs. Friendable | Swvl Holdings vs. Enfusion | Swvl Holdings vs. eGain |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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