Correlation Between EGain and Phunware
Can any of the company-specific risk be diversified away by investing in both EGain 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 EGain and Phunware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eGain and Phunware, you can compare the effects of market volatilities on EGain 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 EGain with a short position of Phunware. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGain and Phunware.
Diversification Opportunities for EGain and Phunware
Very good diversification
The 3 months correlation between EGain and Phunware is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding eGain and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and EGain 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 eGain 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 EGain i.e., EGain and Phunware go up and down completely randomly.
Pair Corralation between EGain and Phunware
Given the investment horizon of 90 days eGain is expected to generate 0.51 times more return on investment than Phunware. However, eGain is 1.98 times less risky than Phunware. It trades about 0.18 of its potential returns per unit of risk. Phunware is currently generating about -0.25 per unit of risk. If you would invest 587.00 in eGain on October 30, 2024 and sell it today you would earn a total of 58.00 from holding eGain or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
eGain vs. Phunware
Performance |
| Timeline |
| eGain |
| Phunware |
EGain and Phunware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGain and Phunware
The main advantage of trading using opposite EGain and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGain 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.| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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