Correlation Between Swvl Holdings and Banzai International

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy94.78%
ValuesDaily Returns

Swvl Holdings Corp  vs.  Banzai International

 Performance 
       Timeline  
Swvl Holdings Corp 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Swvl Holdings Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal essential indicators, Swvl Holdings showed solid returns over the last few months and may actually be approaching a breakup point.
Banzai International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Insignificant
Over the last 90 days Banzai International 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 basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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.
The idea behind Swvl Holdings Corp and Banzai International 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.
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.

Other Complementary Tools

Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas