Correlation Between Swvl Holdings and Nukkleus

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

Diversification Opportunities for Swvl Holdings and Nukkleus

-0.21

Correlation Coefficient

Swvl Holdings  Nukkleus

Very good diversification

The 3 months correlation between Swvl and Nukkleus is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and Nukkleus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nukkleus 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 Nukkleus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nukkleus has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and Nukkleus go up and down completely randomly.

Pair Corralation between Swvl Holdings and Nukkleus

If you would invest  1.80  in Swvl Holdings Corp on September 22, 2024 and sell it today you would lose (0.19) from holding Swvl Holdings Corp or give up 10.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

Swvl Holdings Corp  vs.  Nukkleus

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 abnormal essential indicators, Swvl Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Nukkleus

Risk-Adjusted Performance

7 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nukkleus are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal forward-looking signals, Nukkleus showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Swvl Holdings and Nukkleus

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

The idea behind Swvl Holdings Corp and Nukkleus 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.