Correlation Between TPT Global and Phunware

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

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

Diversification Opportunities for TPT Global and Phunware

0.08

Correlation Coefficient

TPT Global  Phunware

Significant diversification

The 3 months correlation between TPT and Phunware is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding TPT Global Tech and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and TPT Global 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 TPT Global Tech 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 TPT Global i.e., TPT Global and Phunware go up and down completely randomly.

Pair Corralation between TPT Global and Phunware

Given the investment horizon of 90 days TPT Global Tech is expected to generate 84.07 times more return on investment than Phunware. However, TPT Global is 84.07 times more volatile than Phunware. It trades about 0.38 of its potential returns per unit of risk. Phunware is currently generating about -0.04 per unit of risk. If you would invest  0.00  in TPT Global Tech on May 27, 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 Together
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

TPT Global Tech  vs.  Phunware

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.

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 weak 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 TPT Global and Phunware

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

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..