Correlation Between Troika Media and Phunware
Can any of the company-specific risk be diversified away by investing in both Troika Media 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 Troika Media and Phunware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Troika Media Group and Phunware, you can compare the effects of market volatilities on Troika Media 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 Troika Media with a short position of Phunware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Troika Media and Phunware.
Diversification Opportunities for Troika Media and Phunware
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Troika and Phunware is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Troika Media Group and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and Troika Media 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 Troika Media Group 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 Troika Media i.e., Troika Media and Phunware go up and down completely randomly.
Pair Corralation between Troika Media and Phunware
If you would invest 20.00 in Phunware on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Phunware or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Troika Media Group vs. Phunware
Performance |
| Timeline |
| Troika Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Phunware |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Troika Media and Phunware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Troika Media and Phunware
The main advantage of trading using opposite Troika Media and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Troika Media 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.The idea behind Troika Media Group and Phunware pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Phunware vs. Integral Ad Science | Phunware vs. Cheer Holding | Phunware vs. Townsquare Media | Phunware vs. Cimpress NV |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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