Using U+0302 COMBINING CIRCUMFLEX ACCENT after the sigma character is the correct way. In Unicode, a combining mark appears after the base character in the data stream. And there is no other combining mark that could be conceivably used instead.
However, the result depends on the font(s) and on the rendering engine. Failures are common. Testing here: σ̂. (Does not look good.) Trying different fonts, when possible, may help. But in general, notations like this are usuall written using equation editors, LaTeX, or other tools that operate above the plain text level.