Correlation Between SOS and Phunware

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

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

Diversification Opportunities for SOS and Phunware

0.93

Correlation Coefficient

SOS  Phunware

Almost no diversification

The 3 months correlation between SOS and Phunware is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding SOS Limited and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and SOS 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 SOS Limited 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 SOS i.e., SOS and Phunware go up and down completely randomly.

Pair Corralation between SOS and Phunware

Considering the 90-day investment horizon SOS Limited is expected to under-perform the Phunware. In addition to that, SOS is 3.88 times more volatile than Phunware. It trades about -0.06 of its total potential returns per unit of risk. Phunware is currently generating about -0.05 per unit of volatility. If you would invest  326.00  in Phunware on July 6, 2025 and sell it today you would lose (45.00) from holding Phunware or give up 13.8% of portfolio value over 90 days.

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

SOS Limited  vs.  Phunware

SOS Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days SOS Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private 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 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.

Pair Trading with SOS and Phunware

The main advantage of trading using opposite SOS and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOS 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 SOS Limited 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.