Correlation Between Iveda Solutions and Sonim Technologies
Can any of the company-specific risk be diversified away by investing in both Iveda Solutions and Sonim Technologies 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 Iveda Solutions and Sonim Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iveda Solutions Warrant and Sonim Technologies, you can compare the effects of market volatilities on Iveda Solutions and Sonim Technologies 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 Iveda Solutions with a short position of Sonim Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iveda Solutions and Sonim Technologies.
Diversification Opportunities for Iveda Solutions and Sonim Technologies
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iveda and Sonim is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Iveda Solutions Warrant and Sonim Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonim Technologies and Iveda Solutions 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 Iveda Solutions Warrant are associated (or correlated) with Sonim Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonim Technologies has no effect on the direction of Iveda Solutions i.e., Iveda Solutions and Sonim Technologies go up and down completely randomly.
Pair Corralation between Iveda Solutions and Sonim Technologies
Assuming the 90 days horizon Iveda Solutions Warrant is expected to under-perform the Sonim Technologies. In addition to that, Iveda Solutions is 8.18 times more volatile than Sonim Technologies. It trades about -0.09 of its total potential returns per unit of risk. Sonim Technologies is currently generating about -0.3 per unit of volatility. If you would invest 298.00 in Sonim Technologies on November 27, 2024 and sell it today you would lose (35.00) from holding Sonim Technologies or give up 11.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Iveda Solutions Warrant vs. Sonim Technologies
Performance |
| Timeline |
| Iveda Solutions Warrant |
| Sonim Technologies |
Iveda Solutions and Sonim Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iveda Solutions and Sonim Technologies
The main advantage of trading using opposite Iveda Solutions and Sonim Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iveda Solutions position performs unexpectedly, Sonim Technologies 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 Sonim Technologies will offset losses from the drop in Sonim Technologies' long position.| Iveda Solutions vs. Iveda Solutions | Iveda Solutions vs. Aclarion | Iveda Solutions vs. Pasithea Therapeutics Corp | Iveda Solutions vs. Thayer Ventures Acquisition |
Check out your portfolio center.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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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