Correlation Between Sonim Technologies and Wialan Technologies

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

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

Diversification Opportunities for Sonim Technologies and Wialan Technologies

0.06

Correlation Coefficient

Sonim Technologies  Wialan Technologies

Significant diversification

The 3 months correlation between Sonim and Wialan is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sonim Technologies and Wialan Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wialan Technologies 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 Wialan Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wialan Technologies has no effect on the direction of Sonim Technologies i.e., Sonim Technologies and Wialan Technologies go up and down completely randomly.

Pair Corralation between Sonim Technologies and Wialan Technologies

Given the investment horizon of 90 days Sonim Technologies is expected to under-perform the Wialan Technologies. In addition to that, Sonim Technologies is 1.92 times more volatile than Wialan Technologies. It trades about -0.02 of its total potential returns per unit of risk. Wialan Technologies is currently generating about 0.04 per unit of volatility. If you would invest  0.10  in Wialan Technologies on May 7, 2025 and sell it today you would earn a total of  0.00  from holding Wialan Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Sonim Technologies  vs.  Wialan Technologies

Sonim Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Sonim Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Wialan Technologies

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Wialan Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Wialan Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sonim Technologies and Wialan Technologies

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

The idea behind Sonim Technologies and Wialan Technologies 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.