Correlation Between Swvl Holdings and CXApp

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

Diversification Opportunities for Swvl Holdings and CXApp

-0.36

Correlation Coefficient

Swvl Holdings  CXApp

Very good diversification

The 3 months correlation between Swvl and CXApp is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp 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 CXApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CXApp Inc has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and CXApp go up and down completely randomly.

Pair Corralation between Swvl Holdings and CXApp

Given the investment horizon of 90 days Swvl Holdings Corp is expected to under-perform the CXApp. But the stock apears to be less risky and, when comparing its historical volatility, Swvl Holdings Corp is 1.43 times less risky than CXApp. The stock trades about 0.0 of its potential returns per unit of risk. The CXApp Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  21.00  in CXApp Inc on September 25, 2024 and sell it today you would earn a total of  0.37  from holding CXApp Inc or generate 1.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Swvl Holdings Corp  vs.  CXApp Inc

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 unfluctuating basic indicators, Swvl Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

CXApp Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CXApp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, CXApp is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Swvl Holdings and CXApp

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

The idea behind Swvl Holdings Corp and CXApp 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.