Correlation Between Gen Digital and Phunware

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

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

Diversification Opportunities for Gen Digital and Phunware

0.45

Correlation Coefficient

Gen Digital  Phunware

Very weak diversification

The 3 months correlation between Gen and Phunware is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Gen Digital and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware and Gen Digital 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 Gen Digital 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 Gen Digital i.e., Gen Digital and Phunware go up and down completely randomly.

Pair Corralation between Gen Digital and Phunware

Considering the 90-day investment horizon Gen Digital is expected to generate 0.38 times more return on investment than Phunware. However, Gen Digital is 2.66 times less risky than Phunware. It trades about -0.1 of its potential returns per unit of risk. Phunware is currently generating about -0.09 per unit of risk. If you would invest  2,953  in Gen Digital on September 11, 2025 and sell it today you would lose (239.00) from holding Gen Digital or give up 8.09% of portfolio value over 90 days.

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

Gen Digital  vs.  Phunware

Gen Digital

Risk-Adjusted Performance

Weakest

Over the last 90 days Gen Digital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm 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 weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Gen Digital and Phunware

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