Correlation Between Swvl Holdings and E2open Parent
Can any of the company-specific risk be diversified away by investing in both Swvl Holdings and E2open Parent 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 E2open Parent 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 E2open Parent Holdings, you can compare the effects of market volatilities on Swvl Holdings and E2open Parent 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 E2open Parent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swvl Holdings and E2open Parent.
Diversification Opportunities for Swvl Holdings and E2open Parent
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Swvl and E2open is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and E2open Parent Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E2open Parent Holdings 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 E2open Parent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E2open Parent Holdings has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and E2open Parent go up and down completely randomly.
Pair Corralation between Swvl Holdings and E2open Parent
Assuming the 90 days horizon Swvl Holdings Corp is expected to under-perform the E2open Parent. In addition to that, Swvl Holdings is 2.74 times more volatile than E2open Parent Holdings. It trades about -0.42 of its total potential returns per unit of risk. E2open Parent Holdings is currently generating about -0.1 per unit of volatility. If you would invest 307.00 in E2open Parent Holdings on September 15, 2024 and sell it today you would lose (11.00) from holding E2open Parent Holdings or give up 3.58% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 81.82% |
Values | Daily Returns |
Swvl Holdings Corp vs. E2open Parent Holdings
Performance |
Timeline |
Swvl Holdings Corp |
E2open Parent Holdings |
Swvl Holdings and E2open Parent Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Swvl Holdings and E2open Parent
The main advantage of trading using opposite Swvl Holdings and E2open Parent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swvl Holdings position performs unexpectedly, E2open Parent 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 E2open Parent will offset losses from the drop in E2open Parent's long position.Swvl Holdings vs. Dave Warrants | Swvl Holdings vs. Aquagold International | Swvl Holdings vs. Morningstar Unconstrained Allocation | Swvl Holdings vs. Thrivent High Yield |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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