Correlation Between Workday and Phunware
Can any of the company-specific risk be diversified away by investing in both Workday 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 Workday and Phunware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workday and Phunware, you can compare the effects of market volatilities on Workday 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 Workday with a short position of Phunware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workday and Phunware.
Diversification Opportunities for Workday and Phunware
Excellent diversification
The 3 months correlation between Workday and Phunware is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Workday and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and Workday 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 Workday 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 Workday i.e., Workday and Phunware go up and down completely randomly.
Pair Corralation between Workday and Phunware
Given the investment horizon of 90 days Workday is expected to generate 0.23 times more return on investment than Phunware. However, Workday is 4.4 times less risky than Phunware. It trades about 0.12 of its potential returns per unit of risk. Phunware is currently generating about -0.25 per unit of risk. If you would invest 26,200 in Workday on October 30, 2024 and sell it today you would earn a total of 843.00 from holding Workday or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Workday vs. Phunware
Performance |
| Timeline |
| Workday |
| Phunware |
Workday and Phunware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workday and Phunware
The main advantage of trading using opposite Workday and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workday 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.| Workday vs. Intuit Inc | Workday vs. Zoom Video Communications | Workday vs. ServiceNow | Workday vs. Snowflake |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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