Correlation Between Swvl Holdings and S A P

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

Diversification Opportunities for Swvl Holdings and S A P

0.32

Correlation Coefficient

Swvl Holdings  S A P

Weak diversification

The 3 months correlation between Swvl and SAP is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Swvl Holdings Corp and SAP SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAP SE ADR 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 S A P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAP SE ADR has no effect on the direction of Swvl Holdings i.e., Swvl Holdings and S A P go up and down completely randomly.

Pair Corralation between Swvl Holdings and S A P

Given the investment horizon of 90 days Swvl Holdings Corp is expected to under-perform the S A P. In addition to that, Swvl Holdings is 2.79 times more volatile than SAP SE ADR. It trades about -0.07 of its total potential returns per unit of risk. SAP SE ADR is currently generating about -0.09 per unit of volatility. If you would invest  27,891  in SAP SE ADR on August 14, 2025 and sell it today you would lose (2,453) from holding SAP SE ADR or give up 8.79% of portfolio value over 90 days.

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

Swvl Holdings Corp  vs.  SAP SE ADR

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 weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

SAP SE ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days SAP SE ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Swvl Holdings and S A P

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

The idea behind Swvl Holdings Corp and SAP SE ADR 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.