How can i use Discrete Wavelet Transform for filtering awgn in wireless random channel coefficients

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To be specific, i have a 1D random signal, x = randn(1,n). I have added awgn to x to get y. Then i have filtered the y using dwt to get y'. correlation between x and y' is lower than correlation between x and y. Can you please help me with this doubt.
Thanks in advance.

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