Correlation Between Advanced Health and Phunware

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

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

Diversification Opportunities for Advanced Health and Phunware

-0.18

Correlation Coefficient

Advanced Health  Phunware

Good diversification

The 3 months correlation between Advanced and Phunware is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Health Intelligence and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and Advanced Health 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 Advanced Health Intelligence 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 Advanced Health i.e., Advanced Health and Phunware go up and down completely randomly.

Pair Corralation between Advanced Health and Phunware

Assuming the 90 days horizon Advanced Health Intelligence is expected to generate 0.51 times more return on investment than Phunware. However, Advanced Health Intelligence is 1.96 times less risky than Phunware. It trades about 0.01 of its potential returns per unit of risk. Phunware is currently generating about -0.01 per unit of risk. If you would invest  0.40  in Advanced Health Intelligence on May 17, 2025 and sell it today you would earn a total of  0.00  from holding Advanced Health Intelligence or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Advanced Health Intelligence  vs.  Phunware

Advanced Health Inte

Risk-Adjusted Performance

Weakest

Over the last 90 days Advanced Health Intelligence has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Advanced Health is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

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 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 Advanced Health and Phunware

The main advantage of trading using opposite Advanced Health and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Health 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 Advanced Health Intelligence 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.