Correlation Between Phunware and TPT Global

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

By analyzing existing cross correlation between Phunware and TPT Global Tech, you can compare the effects of market volatilities on Phunware and TPT Global 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 TPT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phunware and TPT Global.

Diversification Opportunities for Phunware and TPT Global

-0.16

Correlation Coefficient

Phunware  TPT Global

Good diversification

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

Pair Corralation between Phunware and TPT Global

Given the investment horizon of 90 days Phunware is expected to generate 2165.85 times less return on investment than TPT Global. But when comparing it to its historical volatility, Phunware is 83.17 times less risky than TPT Global. It trades about 0.01 of its potential returns per unit of risk. TPT Global Tech is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest  0.01  in TPT Global Tech on May 1, 2025 and sell it today you would earn a total of  0.00  from holding TPT Global Tech or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Phunware  vs.  TPT Global Tech

Phunware

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Phunware are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

TPT Global Tech

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in TPT Global Tech are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, TPT Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Phunware and TPT Global

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

The idea behind Phunware and TPT Global Tech 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.