Correlation Between Agora and Phunware

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

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

Diversification Opportunities for Agora and Phunware

0.71

Correlation Coefficient

Agora  Phunware

Poor diversification

The 3 months correlation between Agora and Phunware is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Agora Inc and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and Agora 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 Agora 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 Agora i.e., Agora and Phunware go up and down completely randomly.

Pair Corralation between Agora and Phunware

Considering the 90-day investment horizon Agora Inc is expected to generate 0.73 times more return on investment than Phunware. However, Agora Inc is 1.36 times less risky than Phunware. It trades about 0.13 of its potential returns per unit of risk. Phunware is currently generating about 0.05 per unit of risk. If you would invest  320.00  in Agora Inc on April 25, 2025 and sell it today you would earn a total of  83.00  from holding Agora Inc or generate 25.94% return on investment over 90 days.

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

Agora Inc  vs.  Phunware

Agora Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Agora Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Agora demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Phunware

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Phunware are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Phunware displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agora and Phunware

The main advantage of trading using opposite Agora and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agora 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 Agora 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.