Correlation Between AgriFORCE Growing and Phunware

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

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

Diversification Opportunities for AgriFORCE Growing and Phunware

0.3

Correlation Coefficient

AgriFORCE Growing  Phunware

Weak diversification

The 3 months correlation between AgriFORCE and Phunware is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding AgriFORCE Growing Systems and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and AgriFORCE Growing 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 AgriFORCE Growing Systems 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 AgriFORCE Growing i.e., AgriFORCE Growing and Phunware go up and down completely randomly.

Pair Corralation between AgriFORCE Growing and Phunware

If you would invest  20.00  in Phunware on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Phunware or generate 0.0% return on investment over 90 days.

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

AgriFORCE Growing Systems  vs.  Phunware

AgriFORCE Growing Systems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AgriFORCE Growing Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, AgriFORCE Growing is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

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 fairly stable basic indicators, Phunware is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with AgriFORCE Growing and Phunware

The main advantage of trading using opposite AgriFORCE Growing and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgriFORCE Growing 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 AgriFORCE Growing Systems 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.