Correlation Between Swvl Holdings and Pagerduty

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

Diversification Opportunities for Swvl Holdings and Pagerduty

0.57

Correlation Coefficient

Swvl Holdings  Pagerduty

Very weak diversification

The 3 months correlation between Swvl and Pagerduty is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and Pagerduty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pagerduty 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 Pagerduty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pagerduty has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and Pagerduty go up and down completely randomly.

Pair Corralation between Swvl Holdings and Pagerduty

Assuming the 90 days horizon Swvl Holdings Corp is expected to generate 6.7 times more return on investment than Pagerduty. However, Swvl Holdings is 6.7 times more volatile than Pagerduty. It trades about 0.04 of its potential returns per unit of risk. Pagerduty is currently generating about -0.18 per unit of risk. If you would invest  1.75  in Swvl Holdings Corp on December 5, 2024 and sell it today you would lose (0.04) from holding Swvl Holdings Corp or give up 2.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	86.44%
Values	Daily Returns

Swvl Holdings Corp  vs.  Pagerduty

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 3 (%) 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.

Pagerduty

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pagerduty has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Swvl Holdings and Pagerduty

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

The idea behind Swvl Holdings Corp and Pagerduty 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.