Correlation Between Phunware and Matterport

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

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

Diversification Opportunities for Phunware and Matterport

-0.14

Correlation Coefficient

Phunware  Matterport

Good diversification

The 3 months correlation between Phunware and Matterport is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Phunware and Matterport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matterport 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 Matterport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matterport has no effect on the direction of Phunware i.e., Phunware and Matterport go up and down completely randomly.

Pair Corralation between Phunware and Matterport

Given the investment horizon of 90 days Phunware is expected to under-perform the Matterport. In addition to that, Phunware is 4.88 times more volatile than Matterport. It trades about -0.09 of its total potential returns per unit of risk. Matterport is currently generating about 0.24 per unit of volatility. If you would invest  473.00  in Matterport on December 21, 2024 and sell it today you would earn a total of  65.00  from holding Matterport or generate 13.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	76.67%
Values	Daily Returns

Phunware  vs.  Matterport

Phunware

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Matterport

Risk-Adjusted Performance

Solid

Over the last 90 days Matterport has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak basic indicators, Matterport reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Phunware and Matterport

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

The idea behind Phunware and Matterport 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .