Correlation Between Identiv and Lantronix
Can any of the company-specific risk be diversified away by investing in both Identiv and Lantronix 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 Identiv and Lantronix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Lantronix, you can compare the effects of market volatilities on Identiv and Lantronix 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 Identiv with a short position of Lantronix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Lantronix.
Diversification Opportunities for Identiv and Lantronix
Very good diversification
The 3 months correlation between Identiv and Lantronix is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Lantronix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lantronix and Identiv 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 Identiv are associated (or correlated) with Lantronix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lantronix has no effect on the direction of Identiv i.e., Identiv and Lantronix go up and down completely randomly.
Pair Corralation between Identiv and Lantronix
Given the investment horizon of 90 days Identiv is expected to generate 0.48 times more return on investment than Lantronix. However, Identiv is 2.07 times less risky than Lantronix. It trades about 0.16 of its potential returns per unit of risk. Lantronix is currently generating about -0.18 per unit of risk. If you would invest 348.00 in Identiv on August 28, 2024 and sell it today you would earn a total of 38.00 from holding Identiv or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. Lantronix
Performance |
| Timeline |
| Identiv |
| Lantronix |
Identiv and Lantronix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Lantronix
The main advantage of trading using opposite Identiv and Lantronix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Lantronix 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 Lantronix will offset losses from the drop in Lantronix's long position.| Identiv vs. TransAct Technologies Incorporated | Identiv vs. AGM Group Holdings | Identiv vs. AstroNova | Identiv vs. Key Tronic |
| Lantronix vs. LightPath Technologies | Lantronix vs. Luna Innovations Incorporated | Lantronix vs. Identiv | Lantronix vs. VOXX International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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