Correlation Between Thayer Ventures and Swvl Holdings

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Thayer Ventures 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 Thayer Ventures and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thayer Ventures Acquisition and Swvl Holdings Corp, you can compare the effects of market volatilities on Thayer Ventures 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 Thayer Ventures with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thayer Ventures and Swvl Holdings.

Diversification Opportunities for Thayer Ventures and Swvl Holdings

-0.5
  Correlation Coefficient

Very good diversification

The 3 months correlation between Thayer and Swvl is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Thayer Ventures Acquisition 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 Thayer Ventures 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 Thayer Ventures Acquisition 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 Thayer Ventures i.e., Thayer Ventures and Swvl Holdings go up and down completely randomly.

Pair Corralation between Thayer Ventures and Swvl Holdings

Assuming the 90 days horizon Thayer Ventures Acquisition is expected to generate 3.44 times more return on investment than Swvl Holdings. However, Thayer Ventures is 3.44 times more volatile than Swvl Holdings Corp. It trades about 0.06 of its potential returns per unit of risk. Swvl Holdings Corp is currently generating about -0.04 per unit of risk. If you would invest  1.30  in Thayer Ventures Acquisition on September 5, 2024 and sell it today you would lose (0.22) from holding Thayer Ventures Acquisition or give up 16.92% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy81.82%
ValuesDaily Returns

Thayer Ventures Acquisition  vs.  Swvl Holdings Corp

 Performance 
       Timeline  
Thayer Ventures Acqu 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Thayer Ventures Acquisition are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Thayer Ventures showed solid returns over the last few months and may actually be approaching a breakup point.
Swvl Holdings Corp 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Swvl Holdings Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting essential indicators, Swvl Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Thayer Ventures and Swvl Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Thayer Ventures and Swvl Holdings

The main advantage of trading using opposite Thayer Ventures and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thayer Ventures 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 Thayer Ventures Acquisition 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets