Correlation Between Swvl Holdings and Expensify

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

Diversification Opportunities for Swvl Holdings and Expensify

0.0

Correlation Coefficient

Swvl Holdings  Expensify

Pay attention - limited upside

The 3 months correlation between Swvl and Expensify is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and Expensify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expensify 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 Expensify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expensify has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and Expensify go up and down completely randomly.

Pair Corralation between Swvl Holdings and Expensify

Assuming the 90 days horizon Swvl Holdings is expected to generate 1.77 times less return on investment than Expensify. In addition to that, Swvl Holdings is 1.72 times more volatile than Expensify. It trades about 0.05 of its total potential returns per unit of risk. Expensify is currently generating about 0.16 per unit of volatility. If you would invest  252.00  in Expensify on September 13, 2024 and sell it today you would earn a total of  133.00  from holding Expensify or generate 52.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	92.06%
Values	Daily Returns

Swvl Holdings Corp  vs.  Expensify

Swvl Holdings Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Swvl Holdings Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting essential indicators, Swvl Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Expensify

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Expensify are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal technical and fundamental indicators, Expensify showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Swvl Holdings and Expensify

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

The idea behind Swvl Holdings Corp and Expensify 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.