Correlation Between Phunware and Appswarm

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

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

Diversification Opportunities for Phunware and Appswarm

0.16

Correlation Coefficient

Phunware  Appswarm

Average diversification

The 3 months correlation between Phunware and Appswarm is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Phunware and Appswarm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appswarm and Phunware 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 Phunware are associated (or correlated) with Appswarm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appswarm has no effect on the direction of Phunware i.e., Phunware and Appswarm go up and down completely randomly.

Pair Corralation between Phunware and Appswarm

Given the investment horizon of 90 days Phunware is expected to under-perform the Appswarm. But the stock apears to be less risky and, when comparing its historical volatility, Phunware is 10.41 times less risky than Appswarm. The stock trades about -0.04 of its potential returns per unit of risk. The Appswarm is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.02  in Appswarm on July 13, 2025 and sell it today you would lose (0.01) from holding Appswarm or give up 50.0% of portfolio value over 90 days.

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

Phunware  vs.  Appswarm

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 latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Appswarm

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Appswarm are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Appswarm displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Phunware and Appswarm

The main advantage of trading using opposite Phunware and Appswarm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phunware position performs unexpectedly, Appswarm 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 Appswarm will offset losses from the drop in Appswarm's long position.

The idea behind Phunware and Appswarm 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.