Correlation Between Sonim Technologies and Ezenia

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

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

Diversification Opportunities for Sonim Technologies and Ezenia

0.0

Correlation Coefficient

Sonim Technologies  Ezenia

Pay attention - limited upside

The 3 months correlation between Sonim and Ezenia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sonim Technologies and Ezenia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ezenia Inc 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 Ezenia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ezenia Inc has no effect on the direction of Sonim Technologies i.e., Sonim Technologies and Ezenia go up and down completely randomly.

Pair Corralation between Sonim Technologies and Ezenia

If you would invest (100.00) in Ezenia Inc on December 19, 2024 and sell it today you would earn a total of  100.00  from holding Ezenia Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sonim Technologies  vs.  Ezenia Inc

Sonim Technologies

Risk-Adjusted Performance

Very Weak

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

Ezenia Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ezenia Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Ezenia is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Sonim Technologies and Ezenia

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

The idea behind Sonim Technologies and Ezenia Inc 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.