Correlation Between Agilysys and Swvl Holdings

Can any of the company-specific risk be diversified away by investing in both Agilysys 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 Agilysys and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Agilysys and Swvl Holdings Corp, you can compare the effects of market volatilities on Agilysys 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 Agilysys with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilysys and Swvl Holdings.

Diversification Opportunities for Agilysys and Swvl Holdings

0.0

Correlation Coefficient

Agilysys  Swvl Holdings

Pay attention - limited upside

The 3 months correlation between Agilysys and Swvl is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agilysys 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 Agilysys 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 Agilysys 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 Agilysys i.e., Agilysys and Swvl Holdings go up and down completely randomly.

Pair Corralation between Agilysys and Swvl Holdings

Given the investment horizon of 90 days Agilysys is expected to generate 20.63 times less return on investment than Swvl Holdings. But when comparing it to its historical volatility, Agilysys is 18.06 times less risky than Swvl Holdings. It trades about 0.05 of its potential returns per unit of risk. Swvl Holdings Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1.99  in Swvl Holdings Corp on September 20, 2024 and sell it today you would lose (0.30) from holding Swvl Holdings Corp or give up 15.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.38%
Values	Daily Returns

Agilysys  vs.  Swvl Holdings Corp

Agilysys

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agilysys are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Agilysys unveiled solid returns over the last few months and may actually be approaching a breakup point.

Swvl Holdings Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Swvl Holdings Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal essential indicators, Swvl Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agilysys and Swvl Holdings

The main advantage of trading using opposite Agilysys and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilysys 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.

The idea behind Agilysys and Swvl Holdings Corp 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.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.