Correlation Between Phunware and Digital World
Can any of the company-specific risk be diversified away by investing in both Phunware and Digital World 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 Digital World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phunware and Digital World Acquisition, you can compare the effects of market volatilities on Phunware and Digital World 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 Digital World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phunware and Digital World.
Diversification Opportunities for Phunware and Digital World
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Phunware and Digital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Phunware and Digital World Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital World Acquisition 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 Digital World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital World Acquisition has no effect on the direction of Phunware i.e., Phunware and Digital World go up and down completely randomly.
Pair Corralation between Phunware and Digital World
Given the investment horizon of 90 days Phunware is expected to generate 3.14 times more return on investment than Digital World. However, Phunware is 3.14 times more volatile than Digital World Acquisition. It trades about 0.02 of its potential returns per unit of risk. Digital World Acquisition is currently generating about 0.05 per unit of risk. If you would invest 5,050 in Phunware on November 2, 2024 and sell it today you would lose (4,655) from holding Phunware or give up 92.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.72% |
| Values | Daily Returns |
Phunware vs. Digital World Acquisition
Performance |
| Timeline |
| Phunware |
| Digital World Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Phunware and Digital World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phunware and Digital World
The main advantage of trading using opposite Phunware and Digital World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phunware position performs unexpectedly, Digital World 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 Digital World will offset losses from the drop in Digital World'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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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