Correlation Between Phunware and Camber Energy

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

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

Diversification Opportunities for Phunware and Camber Energy

0.31

Correlation Coefficient

Phunware  Camber Energy

Weak diversification

The 3 months correlation between Phunware and Camber is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Phunware and Camber Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camber Energy 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 Camber Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camber Energy has no effect on the direction of Phunware i.e., Phunware and Camber Energy go up and down completely randomly.

Pair Corralation between Phunware and Camber Energy

Given the investment horizon of 90 days Phunware is expected to under-perform the Camber Energy. In addition to that, Phunware is 2.15 times more volatile than Camber Energy. It trades about -0.04 of its total potential returns per unit of risk. Camber Energy is currently generating about 0.0 per unit of volatility. If you would invest  19.00  in Camber Energy on February 18, 2024 and sell it today you would lose (2.00) from holding Camber Energy or give up 10.53% of portfolio value over 90 days.

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

Phunware  vs.  Camber Energy

Phunware

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Phunware has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in June 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Camber Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Camber Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Camber Energy is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Phunware and Camber Energy

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

The idea behind Phunware and Camber Energy 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..