Correlation Between Wag Group and Swvl Holdings
Can any of the company-specific risk be diversified away by investing in both Wag Group 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 Wag Group and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wag Group Co and Swvl Holdings Corp, you can compare the effects of market volatilities on Wag Group 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 Wag Group with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wag Group and Swvl Holdings.
Diversification Opportunities for Wag Group and Swvl Holdings
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wag and Swvl is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Wag Group Co 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 Wag Group 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 Wag Group Co 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 Wag Group i.e., Wag Group and Swvl Holdings go up and down completely randomly.
Pair Corralation between Wag Group and Swvl Holdings
Considering the 90-day investment horizon Wag Group Co is expected to generate 0.73 times more return on investment than Swvl Holdings. However, Wag Group Co is 1.37 times less risky than Swvl Holdings. It trades about 0.07 of its potential returns per unit of risk. Swvl Holdings Corp is currently generating about -0.02 per unit of risk. If you would invest 23.00 in Wag Group Co on December 3, 2024 and sell it today you would earn a total of 4.10 from holding Wag Group Co or generate 17.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 86.89% |
Values | Daily Returns |
Wag Group Co vs. Swvl Holdings Corp
Performance |
Timeline |
Wag Group |
Swvl Holdings Corp |
Wag Group and Swvl Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wag Group and Swvl Holdings
The main advantage of trading using opposite Wag Group and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wag Group 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.Wag Group vs. ePlus inc | Wag Group vs. Progress Software | Wag Group vs. Agilysys | Wag Group vs. Sapiens International |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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