Correlation Between Swvl Holdings and PTC

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

Diversification Opportunities for Swvl Holdings and PTC

0.03

Correlation Coefficient

Swvl Holdings  PTC

Significant diversification

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

Pair Corralation between Swvl Holdings and PTC

Assuming the 90 days horizon Swvl Holdings Corp is expected to generate 10.51 times more return on investment than PTC. However, Swvl Holdings is 10.51 times more volatile than PTC Inc. It trades about -0.02 of its potential returns per unit of risk. PTC Inc is currently generating about -0.32 per unit of risk. If you would invest  1.68  in Swvl Holdings Corp on September 30, 2024 and sell it today you would lose (0.28) from holding Swvl Holdings Corp or give up 16.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Swvl Holdings Corp  vs.  PTC Inc

Swvl Holdings Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Swvl Holdings Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting essential indicators, Swvl Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

PTC Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PTC Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, PTC is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Swvl Holdings and PTC

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

The idea behind Swvl Holdings Corp and PTC Inc 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.