Correlation Between Expensify and Swvl Holdings

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

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

Diversification Opportunities for Expensify and Swvl Holdings

-0.09

Correlation Coefficient

Expensify  Swvl Holdings

Good diversification

The 3 months correlation between Expensify and Swvl is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Expensify 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 Expensify 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 Expensify 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 Expensify i.e., Expensify and Swvl Holdings go up and down completely randomly.

Pair Corralation between Expensify and Swvl Holdings

Given the investment horizon of 90 days Expensify is expected to generate 0.93 times more return on investment than Swvl Holdings. However, Expensify is 1.07 times less risky than Swvl Holdings. It trades about 0.44 of its potential returns per unit of risk. Swvl Holdings Corp is currently generating about -0.42 per unit of risk. If you would invest  275.00  in Expensify on September 16, 2024 and sell it today you would earn a total of  112.00  from holding Expensify or generate 40.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.71%
Values	Daily Returns

Expensify  vs.  Swvl Holdings Corp

Expensify

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Expensify are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical and fundamental indicators, Expensify showed solid returns over the last few months and may actually be approaching a breakup point.

Swvl Holdings Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Swvl Holdings Corp are ranked lower than 1 (%) 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 Expensify and Swvl Holdings

The main advantage of trading using opposite Expensify and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expensify 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 Expensify 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.