Correlation Between A2Z Smart and Phunware

Can any of the company-specific risk be diversified away by investing in both A2Z Smart 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 A2Z Smart and Phunware into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between A2Z Smart Technologies and Phunware, you can compare the effects of market volatilities on A2Z Smart 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 A2Z Smart with a short position of Phunware. Check out your portfolio center. Please also check ongoing floating volatility patterns of A2Z Smart and Phunware.

Diversification Opportunities for A2Z Smart and Phunware

0.3

Correlation Coefficient

A2Z Smart  Phunware

Weak diversification

The 3 months correlation between A2Z and Phunware is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding A2Z Smart Technologies and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and A2Z Smart 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 A2Z Smart Technologies 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 A2Z Smart i.e., A2Z Smart and Phunware go up and down completely randomly.

Pair Corralation between A2Z Smart and Phunware

Allowing for the 90-day total investment horizon A2Z Smart Technologies is expected to under-perform the Phunware. But the stock apears to be less risky and, when comparing its historical volatility, A2Z Smart Technologies is 1.05 times less risky than Phunware. The stock trades about -0.19 of its potential returns per unit of risk. The Phunware is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  334.00  in Phunware on July 23, 2025 and sell it today you would lose (53.00) from holding Phunware or give up 15.87% of portfolio value over 90 days.

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

A2Z Smart Technologies  vs.  Phunware

A2Z Smart Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days A2Z Smart Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Phunware

Risk-Adjusted Performance

Weakest

Over the last 90 days Phunware has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with A2Z Smart and Phunware

The main advantage of trading using opposite A2Z Smart and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A2Z Smart 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 A2Z Smart Technologies 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.