Correlation Between OLB and Swvl Holdings

Can any of the company-specific risk be diversified away by investing in both OLB 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 OLB and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OLB Group and Swvl Holdings Corp, you can compare the effects of market volatilities on OLB 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 OLB with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of OLB and Swvl Holdings.

Diversification Opportunities for OLB and Swvl Holdings

-0.8

Correlation Coefficient

OLB  Swvl Holdings

Pay attention - limited upside

The 3 months correlation between OLB and Swvl is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding OLB Group 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 OLB 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 OLB Group 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 OLB i.e., OLB and Swvl Holdings go up and down completely randomly.

Pair Corralation between OLB and Swvl Holdings

Considering the 90-day investment horizon OLB Group is expected to under-perform the Swvl Holdings. In addition to that, OLB is 1.04 times more volatile than Swvl Holdings Corp. It trades about -0.09 of its total potential returns per unit of risk. Swvl Holdings Corp is currently generating about 0.21 per unit of volatility. If you would invest  286.00  in Swvl Holdings Corp on September 26, 2024 and sell it today you would earn a total of  346.00  from holding Swvl Holdings Corp or generate 120.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

OLB Group  vs.  Swvl Holdings Corp

OLB Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OLB Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Swvl Holdings Corp

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Swvl Holdings Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Swvl Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OLB and Swvl Holdings

The main advantage of trading using opposite OLB and Swvl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OLB 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.

The idea behind OLB Group and Swvl Holdings Corp 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.