Correlation Between Blackline and Phunware
Can any of the company-specific risk be diversified away by investing in both Blackline and Phunware 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 Blackline and Phunware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackline and Phunware, you can compare the effects of market volatilities on Blackline and Phunware 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 Blackline with a short position of Phunware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackline and Phunware.
Diversification Opportunities for Blackline and Phunware
Excellent diversification
The 3 months correlation between Blackline and Phunware is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Blackline and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and Blackline 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 Blackline are associated (or correlated) with Phunware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phunware has no effect on the direction of Blackline i.e., Blackline and Phunware go up and down completely randomly.
Pair Corralation between Blackline and Phunware
Allowing for the 90-day total investment horizon Blackline is expected to generate 0.32 times more return on investment than Phunware. However, Blackline is 3.17 times less risky than Phunware. It trades about 0.01 of its potential returns per unit of risk. Phunware is currently generating about -0.2 per unit of risk. If you would invest 6,037 in Blackline on October 29, 2024 and sell it today you would earn a total of 9.00 from holding Blackline or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackline vs. Phunware
Performance |
| Timeline |
| Blackline |
| Phunware |
Blackline and Phunware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackline and Phunware
The main advantage of trading using opposite Blackline and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackline position performs unexpectedly, Phunware 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 Phunware will offset losses from the drop in Phunware's long position.| Blackline vs. Manhattan Associates | Blackline vs. Aspen Technology | Blackline vs. DoubleVerify Holdings | Blackline vs. ANSYS Inc |
| Phunware vs. HeartCore Enterprises | Phunware vs. Beamr Imaging Ltd | Phunware vs. AMTD Digital | Phunware vs. CXApp Inc |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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