Correlation Between Swvl Holdings and Key Tronic

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

Diversification Opportunities for Swvl Holdings and Key Tronic

-0.68
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Swvl and Key is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and Key Tronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Key Tronic 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 Key Tronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Key Tronic has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and Key Tronic go up and down completely randomly.

Pair Corralation between Swvl Holdings and Key Tronic

Given the investment horizon of 90 days Swvl Holdings Corp is expected to under-perform the Key Tronic. In addition to that, Swvl Holdings is 1.38 times more volatile than Key Tronic. It trades about -0.11 of its total potential returns per unit of risk. Key Tronic is currently generating about 0.05 per unit of volatility. If you would invest  304.00  in Key Tronic on July 27, 2025 and sell it today you would earn a total of  21.00  from holding Key Tronic or generate 6.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Swvl Holdings Corp  vs.  Key Tronic

 Performance 
       Timeline  
Swvl Holdings Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Swvl Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in November 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Key Tronic 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Key Tronic are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Key Tronic may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Swvl Holdings and Key Tronic Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Swvl Holdings and Key Tronic

The main advantage of trading using opposite Swvl Holdings and Key Tronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swvl Holdings position performs unexpectedly, Key Tronic 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 Key Tronic will offset losses from the drop in Key Tronic's long position.
The idea behind Swvl Holdings Corp and Key Tronic 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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