Correlation Between Lytus Technologies and Swvl Holdings
Can any of the company-specific risk be diversified away by investing in both Lytus Technologies and Swvl Holdings 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 Lytus Technologies and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lytus Technologies Holdings and Swvl Holdings Corp, you can compare the effects of market volatilities on Lytus Technologies and Swvl Holdings 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 Lytus Technologies with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lytus Technologies and Swvl Holdings.
Diversification Opportunities for Lytus Technologies and Swvl Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lytus and Swvl is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lytus Technologies Holdings and Swvl Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swvl Holdings Corp and Lytus Technologies 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 Lytus Technologies Holdings are associated (or correlated) with Swvl Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swvl Holdings Corp has no effect on the direction of Lytus Technologies i.e., Lytus Technologies and Swvl Holdings go up and down completely randomly.
Pair Corralation between Lytus Technologies and Swvl Holdings
Considering the 90-day investment horizon Lytus Technologies Holdings is expected to under-perform the Swvl Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Lytus Technologies Holdings is 1.81 times less risky than Swvl Holdings. The stock trades about -0.18 of its potential returns per unit of risk. The Swvl Holdings Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1.39 in Swvl Holdings Corp on September 16, 2024 and sell it today you would lose (0.10) from holding Swvl Holdings Corp or give up 7.19% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 90.77% |
Values | Daily Returns |
Lytus Technologies Holdings vs. Swvl Holdings Corp
Performance |
Timeline |
Lytus Technologies |
Swvl Holdings Corp |
Lytus Technologies and Swvl Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lytus Technologies and Swvl Holdings
The main advantage of trading using opposite Lytus Technologies and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lytus Technologies position performs unexpectedly, Swvl Holdings 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 Swvl Holdings will offset losses from the drop in Swvl Holdings' long position.Lytus Technologies vs. Swvl Holdings Corp | Lytus Technologies vs. Guardforce AI Co | Lytus Technologies vs. Thayer Ventures Acquisition |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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