Correlation Between Swvl Holdings and Banzai International
Can any of the company-specific risk be diversified away by investing in both Swvl Holdings and Banzai International 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 Banzai International 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 Banzai International, you can compare the effects of market volatilities on Swvl Holdings and Banzai International 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 Banzai International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swvl Holdings and Banzai International.
Diversification Opportunities for Swvl Holdings and Banzai International
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swvl and Banzai is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and Banzai International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banzai International 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 Banzai International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banzai International has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and Banzai International go up and down completely randomly.
Pair Corralation between Swvl Holdings and Banzai International
Assuming the 90 days horizon Swvl Holdings Corp is expected to generate 4.91 times more return on investment than Banzai International. However, Swvl Holdings is 4.91 times more volatile than Banzai International. It trades about 0.08 of its potential returns per unit of risk. Banzai International is currently generating about -0.08 per unit of risk. If you would invest 0.79 in Swvl Holdings Corp on September 20, 2024 and sell it today you would earn a total of 0.90 from holding Swvl Holdings Corp or generate 113.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 94.78% |
Values | Daily Returns |
Swvl Holdings Corp vs. Banzai International
Performance |
Timeline |
Swvl Holdings Corp |
Banzai International |
Swvl Holdings and Banzai International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Swvl Holdings and Banzai International
The main advantage of trading using opposite Swvl Holdings and Banzai International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swvl Holdings position performs unexpectedly, Banzai International 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 Banzai International will offset losses from the drop in Banzai International's long position.Swvl Holdings vs. Dave Warrants | Swvl Holdings vs. Aquagold International | Swvl Holdings vs. Morningstar Unconstrained Allocation | Swvl Holdings vs. Thrivent High Yield |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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