Correlation Between Phunware and Swvl Holdings

Can any of the company-specific risk be diversified away by investing in both Phunware and Swvl 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 Phunware and Swvl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Phunware and Swvl Holdings Corp, you can compare the effects of market volatilities on Phunware and Swvl 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 Phunware with a short position of Swvl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phunware and Swvl Holdings.

Diversification Opportunities for Phunware and Swvl Holdings

0.65

Correlation Coefficient

Phunware  Swvl Holdings

Poor diversification

The 3 months correlation between Phunware and Swvl is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Phunware and Swvl Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swvl Holdings Corp and Phunware 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 Phunware are associated (or correlated) with Swvl Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swvl Holdings Corp has no effect on the direction of Phunware i.e., Phunware and Swvl Holdings go up and down completely randomly.

Pair Corralation between Phunware and Swvl Holdings

Given the investment horizon of 90 days Phunware is expected to generate 0.98 times more return on investment than Swvl Holdings. However, Phunware is 1.02 times less risky than Swvl Holdings. It trades about 0.02 of its potential returns per unit of risk. Swvl Holdings Corp is currently generating about -0.08 per unit of risk. If you would invest  286.00  in Phunware on June 22, 2025 and sell it today you would earn a total of  4.00  from holding Phunware or generate 1.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Phunware  vs.  Swvl Holdings Corp

Phunware

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Phunware are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Phunware is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Swvl Holdings Corp

Risk-Adjusted Performance

Weakest

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

Pair Trading with Phunware and Swvl Holdings

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

The idea behind Phunware and Swvl Holdings Corp 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.