Correlation Between Swvl Holdings and Freight Technologies

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

Diversification Opportunities for Swvl Holdings and Freight Technologies

-0.53

Correlation Coefficient

Swvl Holdings  Freight Technologies

Excellent diversification

The 3 months correlation between Swvl and Freight is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and Freight Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freight Technologies 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 Freight Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freight Technologies has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and Freight Technologies go up and down completely randomly.

Pair Corralation between Swvl Holdings and Freight Technologies

Assuming the 90 days horizon Swvl Holdings Corp is expected to under-perform the Freight Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Swvl Holdings Corp is 1.45 times less risky than Freight Technologies. The stock trades about -0.32 of its potential returns per unit of risk. The Freight Technologies is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  144.00  in Freight Technologies on September 15, 2024 and sell it today you would earn a total of  27.00  from holding Freight Technologies or generate 18.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	85.71%
Values	Daily Returns

Swvl Holdings Corp  vs.  Freight Technologies

Swvl Holdings Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Swvl Holdings Corp are ranked lower than 3 (%) 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.

Freight Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Freight Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Swvl Holdings and Freight Technologies

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

The idea behind Swvl Holdings Corp and Freight Technologies 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.