Correlation Between Phunware and Aterian
Can any of the company-specific risk be diversified away by investing in both Phunware and Aterian 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 Aterian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phunware and Aterian, you can compare the effects of market volatilities on Phunware and Aterian 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 Aterian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phunware and Aterian.
Diversification Opportunities for Phunware and Aterian
Very good diversification
The 3 months correlation between Phunware and Aterian is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Phunware and Aterian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aterian 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 Aterian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aterian has no effect on the direction of Phunware i.e., Phunware and Aterian go up and down completely randomly.
Pair Corralation between Phunware and Aterian
Given the investment horizon of 90 days Phunware is expected to under-perform the Aterian. In addition to that, Phunware is 2.61 times more volatile than Aterian. It trades about -0.38 of its total potential returns per unit of risk. Aterian is currently generating about -0.02 per unit of volatility. If you would invest 269.00 in Aterian on August 28, 2024 and sell it today you would lose (7.00) from holding Aterian or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phunware vs. Aterian
Performance |
| Timeline |
| Phunware |
| Aterian |
Phunware and Aterian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phunware and Aterian
The main advantage of trading using opposite Phunware and Aterian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phunware position performs unexpectedly, Aterian 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 Aterian will offset losses from the drop in Aterian's long position.| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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