Correlation Between Workiva and Phunware
Can any of the company-specific risk be diversified away by investing in both Workiva 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 Workiva and Phunware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workiva and Phunware, you can compare the effects of market volatilities on Workiva 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 Workiva with a short position of Phunware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workiva and Phunware.
Diversification Opportunities for Workiva and Phunware
Excellent diversification
The 3 months correlation between Workiva and Phunware is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Workiva and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and Workiva 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 Workiva 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 Workiva i.e., Workiva and Phunware go up and down completely randomly.
Pair Corralation between Workiva and Phunware
Allowing for the 90-day total investment horizon Workiva is expected to generate 0.6 times more return on investment than Phunware. However, Workiva is 1.67 times less risky than Phunware. It trades about -0.16 of its potential returns per unit of risk. Phunware is currently generating about -0.2 per unit of risk. If you would invest 10,983 in Workiva on October 29, 2024 and sell it today you would lose (1,283) from holding Workiva or give up 11.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Workiva vs. Phunware
Performance |
| Timeline |
| Workiva |
| Phunware |
Workiva and Phunware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workiva and Phunware
The main advantage of trading using opposite Workiva and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workiva 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 Workiva 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. 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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