Correlation Between C3 Ai and Phunware

Can any of the company-specific risk be diversified away by investing in both C3 Ai 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 C3 Ai and Phunware into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between C3 Ai Inc and Phunware, you can compare the effects of market volatilities on C3 Ai 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 C3 Ai with a short position of Phunware. Check out your portfolio center. Please also check ongoing floating volatility patterns of C3 Ai and Phunware.

Diversification Opportunities for C3 Ai and Phunware

0.65

Correlation Coefficient

C3 Ai  Phunware

Poor diversification

The 3 months correlation between C3 Ai and Phunware is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding C3 Ai Inc and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and C3 Ai 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 C3 Ai Inc 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 C3 Ai i.e., C3 Ai and Phunware go up and down completely randomly.

Pair Corralation between C3 Ai and Phunware

Allowing for the 90-day total investment horizon C3 Ai Inc is expected to generate 0.89 times more return on investment than Phunware. However, C3 Ai Inc is 1.13 times less risky than Phunware. It trades about 0.04 of its potential returns per unit of risk. Phunware is currently generating about 0.01 per unit of risk. If you would invest  2,248  in C3 Ai Inc on May 2, 2025 and sell it today you would earn a total of  108.00  from holding C3 Ai Inc or generate 4.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

C3 Ai Inc  vs.  Phunware

C3 Ai Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in C3 Ai Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, C3 Ai may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Phunware

Risk-Adjusted Performance

Very Weak

Over the last 90 days Phunware has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Phunware is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with C3 Ai and Phunware

The main advantage of trading using opposite C3 Ai and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C3 Ai 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 C3 Ai Inc 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.

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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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.