Correlation Between Swvl Holdings and Agilysys

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

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

Diversification Opportunities for Swvl Holdings and Agilysys

0.03

Correlation Coefficient

Swvl Holdings  Agilysys

Significant diversification

The 3 months correlation between Swvl and Agilysys is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and Agilysys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilysys and Swvl Holdings 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 Swvl Holdings Corp are associated (or correlated) with Agilysys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilysys has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and Agilysys go up and down completely randomly.

Pair Corralation between Swvl Holdings and Agilysys

Assuming the 90 days horizon Swvl Holdings Corp is expected to generate 3.29 times more return on investment than Agilysys. However, Swvl Holdings is 3.29 times more volatile than Agilysys. It trades about 0.07 of its potential returns per unit of risk. Agilysys is currently generating about 0.13 per unit of risk. If you would invest  1.44  in Swvl Holdings Corp on September 21, 2024 and sell it today you would earn a total of  0.25  from holding Swvl Holdings Corp or generate 17.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

Swvl Holdings Corp  vs.  Agilysys

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.

Agilysys

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agilysys are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Agilysys unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Swvl Holdings and Agilysys

The main advantage of trading using opposite Swvl Holdings and Agilysys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swvl Holdings position performs unexpectedly, Agilysys 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 Agilysys will offset losses from the drop in Agilysys' long position.

The idea behind Swvl Holdings Corp and Agilysys 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 Stocks Directory module to find actively traded stocks across global markets.