Correlation Between Swvl Holdings and Dave Warrants

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

Diversification Opportunities for Swvl Holdings and Dave Warrants

-0.03

Correlation Coefficient

Swvl Holdings  Dave Warrants

Good diversification

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

Pair Corralation between Swvl Holdings and Dave Warrants

Assuming the 90 days horizon Swvl Holdings Corp is expected to generate 0.81 times more return on investment than Dave Warrants. However, Swvl Holdings Corp is 1.24 times less risky than Dave Warrants. It trades about 0.06 of its potential returns per unit of risk. Dave Warrants is currently generating about 0.01 per unit of risk. If you would invest  1.40  in Swvl Holdings Corp on December 27, 2024 and sell it today you would earn a total of  0.15  from holding Swvl Holdings Corp or generate 10.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	83.33%
Values	Daily Returns

Swvl Holdings Corp  vs.  Dave Warrants

Swvl Holdings Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Swvl Holdings Corp are ranked lower than 4 (%) 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.

Dave Warrants

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dave Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal technical and fundamental indicators, Dave Warrants may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Swvl Holdings and Dave Warrants

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

The idea behind Swvl Holdings Corp and Dave Warrants 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.