Correlation Between CXApp and Swvl Holdings

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

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

Diversification Opportunities for CXApp and Swvl Holdings

-0.25

Correlation Coefficient

CXApp  Swvl Holdings

Very good diversification

The 3 months correlation between CXApp and Swvl is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc 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 CXApp 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 CXApp Inc 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 CXApp i.e., CXApp and Swvl Holdings go up and down completely randomly.

Pair Corralation between CXApp and Swvl Holdings

Assuming the 90 days horizon CXApp Inc is expected to under-perform the Swvl Holdings. In addition to that, CXApp is 1.65 times more volatile than Swvl Holdings Corp. It trades about -0.03 of its total potential returns per unit of risk. Swvl Holdings Corp is currently generating about 0.02 per unit of volatility. If you would invest  646.00  in Swvl Holdings Corp on September 29, 2024 and sell it today you would earn a total of  4.00  from holding Swvl Holdings Corp or generate 0.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

CXApp Inc  vs.  Swvl Holdings Corp

CXApp Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CXApp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, CXApp is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Swvl Holdings Corp

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Swvl Holdings Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Swvl Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CXApp and Swvl Holdings

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

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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.