Correlation Between Sonim Technologies and PowerFleet
Can any of the company-specific risk be diversified away by investing in both Sonim Technologies and PowerFleet 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 Sonim Technologies and PowerFleet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonim Technologies and PowerFleet, you can compare the effects of market volatilities on Sonim Technologies and PowerFleet 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 Sonim Technologies with a short position of PowerFleet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonim Technologies and PowerFleet.
Diversification Opportunities for Sonim Technologies and PowerFleet
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sonim and PowerFleet is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sonim Technologies and PowerFleet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet and Sonim Technologies 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 Sonim Technologies are associated (or correlated) with PowerFleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerFleet has no effect on the direction of Sonim Technologies i.e., Sonim Technologies and PowerFleet go up and down completely randomly.
Pair Corralation between Sonim Technologies and PowerFleet
If you would invest 469.00 in PowerFleet on September 1, 2024 and sell it today you would earn a total of 0.00 from holding PowerFleet or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sonim Technologies vs. PowerFleet
Performance |
| Timeline |
| Sonim Technologies |
| PowerFleet |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sonim Technologies and PowerFleet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonim Technologies and PowerFleet
The main advantage of trading using opposite Sonim Technologies and PowerFleet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonim Technologies position performs unexpectedly, PowerFleet 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 PowerFleet will offset losses from the drop in PowerFleet's long position.| Sonim Technologies vs. Rigetti Computing | Sonim Technologies vs. D Wave Quantum | Sonim Technologies vs. IONQ Inc | Sonim Technologies vs. Desktop Metal |
| PowerFleet vs. KVH Industries | PowerFleet vs. Comtech Telecommunications Corp | PowerFleet vs. ADTRAN Inc | PowerFleet vs. Digi International |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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