Correlation Between Swvl Holdings and Clearwater Analytics

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

Diversification Opportunities for Swvl Holdings and Clearwater Analytics

0.16

Correlation Coefficient

Swvl Holdings  Clearwater Analytics

Average diversification

The 3 months correlation between Swvl and Clearwater is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and Clearwater Analytics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearwater Analytics 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 Clearwater Analytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearwater Analytics has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and Clearwater Analytics go up and down completely randomly.

Pair Corralation between Swvl Holdings and Clearwater Analytics

Assuming the 90 days horizon Swvl Holdings is expected to generate 1.39 times less return on investment than Clearwater Analytics. In addition to that, Swvl Holdings is 3.8 times more volatile than Clearwater Analytics Holdings. It trades about 0.01 of its total potential returns per unit of risk. Clearwater Analytics Holdings is currently generating about 0.07 per unit of volatility. If you would invest  2,525  in Clearwater Analytics Holdings on September 30, 2024 and sell it today you would earn a total of  276.00  from holding Clearwater Analytics Holdings or generate 10.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	90.63%
Values	Daily Returns

Swvl Holdings Corp  vs.  Clearwater Analytics Holdings

Swvl Holdings Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Swvl Holdings Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting essential indicators, Swvl Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Clearwater Analytics

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Clearwater Analytics Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Clearwater Analytics may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Swvl Holdings and Clearwater Analytics

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

The idea behind Swvl Holdings Corp and Clearwater Analytics Holdings 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.