Correlation Between Enfusion and Phunware
Can any of the company-specific risk be diversified away by investing in both Enfusion 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 Enfusion and Phunware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enfusion and Phunware, you can compare the effects of market volatilities on Enfusion 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 Enfusion with a short position of Phunware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enfusion and Phunware.
Diversification Opportunities for Enfusion and Phunware
Excellent diversification
The 3 months correlation between Enfusion and Phunware is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Enfusion and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and Enfusion 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 Enfusion 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 Enfusion i.e., Enfusion and Phunware go up and down completely randomly.
Pair Corralation between Enfusion and Phunware
Given the investment horizon of 90 days Enfusion is expected to generate 0.44 times more return on investment than Phunware. However, Enfusion is 2.25 times less risky than Phunware. It trades about 0.13 of its potential returns per unit of risk. Phunware is currently generating about -0.25 per unit of risk. If you would invest 1,047 in Enfusion on October 30, 2024 and sell it today you would earn a total of 62.00 from holding Enfusion or generate 5.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Enfusion vs. Phunware
Performance |
| Timeline |
| Enfusion |
| Phunware |
Enfusion and Phunware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enfusion and Phunware
The main advantage of trading using opposite Enfusion and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enfusion 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.| Enfusion vs. ON24 Inc | Enfusion vs. Paycor HCM | Enfusion vs. E2open Parent Holdings | Enfusion vs. Braze 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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