Correlation Between Swvl Holdings and PROS Holdings

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

Diversification Opportunities for Swvl Holdings and PROS Holdings

0.21

Correlation Coefficient

Swvl Holdings  PROS Holdings

Modest diversification

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

Pair Corralation between Swvl Holdings and PROS Holdings

Assuming the 90 days horizon Swvl Holdings is expected to generate 2.58 times less return on investment than PROS Holdings. In addition to that, Swvl Holdings is 2.38 times more volatile than PROS Holdings. It trades about 0.02 of its total potential returns per unit of risk. PROS Holdings is currently generating about 0.15 per unit of volatility. If you would invest  1,730  in PROS Holdings on September 16, 2024 and sell it today you would earn a total of  616.00  from holding PROS Holdings or generate 35.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	90.77%
Values	Daily Returns

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

PROS Holdings

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PROS Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, PROS Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Swvl Holdings and PROS Holdings

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

The idea behind Swvl Holdings Corp and PROS 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.