Correlation Between Swvl Holdings and Blackbaud

Can any of the company-specific risk be diversified away by investing in both Swvl Holdings and Blackbaud 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 Blackbaud 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 Blackbaud, you can compare the effects of market volatilities on Swvl Holdings and Blackbaud 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 Blackbaud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swvl Holdings and Blackbaud.

Diversification Opportunities for Swvl Holdings and Blackbaud

0.61

Correlation Coefficient

Swvl Holdings  Blackbaud

Poor diversification

The 3 months correlation between Swvl and Blackbaud is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and Blackbaud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackbaud 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 Blackbaud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackbaud has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and Blackbaud go up and down completely randomly.

Pair Corralation between Swvl Holdings and Blackbaud

Assuming the 90 days horizon Swvl Holdings Corp is expected to generate 30.74 times more return on investment than Blackbaud. However, Swvl Holdings is 30.74 times more volatile than Blackbaud. It trades about 0.07 of its potential returns per unit of risk. Blackbaud is currently generating about 0.01 per unit of risk. If you would invest  1.00  in Swvl Holdings Corp on October 4, 2024 and sell it today you would earn a total of  0.68  from holding Swvl Holdings Corp or generate 68.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.07%
Values	Daily Returns

Swvl Holdings Corp  vs.  Blackbaud

Swvl Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Blackbaud

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackbaud has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's forward-looking signals remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Swvl Holdings and Blackbaud

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

The idea behind Swvl Holdings Corp and Blackbaud 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.