Correlation Between Sonim Technologies and SatixFy Communications
Can any of the company-specific risk be diversified away by investing in both Sonim Technologies and SatixFy Communications 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 SatixFy Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonim Technologies and SatixFy Communications, you can compare the effects of market volatilities on Sonim Technologies and SatixFy Communications 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 SatixFy Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonim Technologies and SatixFy Communications.
Diversification Opportunities for Sonim Technologies and SatixFy Communications
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sonim and SatixFy is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sonim Technologies and SatixFy Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SatixFy Communications 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 SatixFy Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SatixFy Communications has no effect on the direction of Sonim Technologies i.e., Sonim Technologies and SatixFy Communications go up and down completely randomly.
Pair Corralation between Sonim Technologies and SatixFy Communications
Given the investment horizon of 90 days Sonim Technologies is expected to generate 0.87 times more return on investment than SatixFy Communications. However, Sonim Technologies is 1.15 times less risky than SatixFy Communications. It trades about 0.13 of its potential returns per unit of risk. SatixFy Communications is currently generating about 0.11 per unit of risk. If you would invest 245.00 in Sonim Technologies on September 3, 2024 and sell it today you would earn a total of 86.00 from holding Sonim Technologies or generate 35.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonim Technologies vs. SatixFy Communications
Performance |
| Timeline |
| Sonim Technologies |
| SatixFy Communications |
Sonim Technologies and SatixFy Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonim Technologies and SatixFy Communications
The main advantage of trading using opposite Sonim Technologies and SatixFy Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonim Technologies position performs unexpectedly, SatixFy Communications 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 SatixFy Communications will offset losses from the drop in SatixFy Communications' long position.The idea behind Sonim Technologies and SatixFy Communications 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.| SatixFy Communications vs. Actelis Networks | SatixFy Communications vs. ClearOne | SatixFy Communications vs. Siyata Mobile | SatixFy Communications vs. Mobilicom Limited Warrants |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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