Correlation Between Swvl Holdings and Choice Hotels
Can any of the company-specific risk be diversified away by investing in both Swvl Holdings and Choice Hotels 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 Choice Hotels 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 Choice Hotels International, you can compare the effects of market volatilities on Swvl Holdings and Choice Hotels 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 Choice Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swvl Holdings and Choice Hotels.
Diversification Opportunities for Swvl Holdings and Choice Hotels
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Swvl and Choice is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and Choice Hotels International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choice Hotels Intern 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 Choice Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choice Hotels Intern has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and Choice Hotels go up and down completely randomly.
Pair Corralation between Swvl Holdings and Choice Hotels
Assuming the 90 days horizon Swvl Holdings Corp is expected to generate 5.54 times more return on investment than Choice Hotels. However, Swvl Holdings is 5.54 times more volatile than Choice Hotels International. It trades about -0.03 of its potential returns per unit of risk. Choice Hotels International is currently generating about -0.19 per unit of risk. If you would invest 1.49 in Swvl Holdings Corp on September 2, 2025 and sell it today you would lose (0.49) from holding Swvl Holdings Corp or give up 32.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.31% |
| Values | Daily Returns |
Swvl Holdings Corp vs. Choice Hotels International
Performance |
| Timeline |
| Swvl Holdings Corp |
| Choice Hotels Intern |
Swvl Holdings and Choice Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swvl Holdings and Choice Hotels
The main advantage of trading using opposite Swvl Holdings and Choice Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swvl Holdings position performs unexpectedly, Choice Hotels 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 Choice Hotels will offset losses from the drop in Choice Hotels' long position.| Swvl Holdings vs. Natcore Technology | Swvl Holdings vs. Seneca Foods | Swvl Holdings vs. Juma Technology Corp | Swvl Holdings vs. Collins Foods Limited |
| Choice Hotels vs. Teradata Corp | Choice Hotels vs. Baristas Coffee | Choice Hotels vs. Darden Restaurants | Choice Hotels vs. Black Rock Coffee |
Check out your portfolio center.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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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