Correlation Between Lantronix and Knightscope
Can any of the company-specific risk be diversified away by investing in both Lantronix and Knightscope 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 Lantronix and Knightscope into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lantronix and Knightscope, you can compare the effects of market volatilities on Lantronix and Knightscope 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 Lantronix with a short position of Knightscope. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lantronix and Knightscope.
Diversification Opportunities for Lantronix and Knightscope
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lantronix and Knightscope is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lantronix and Knightscope in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knightscope and Lantronix 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 Lantronix are associated (or correlated) with Knightscope. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knightscope has no effect on the direction of Lantronix i.e., Lantronix and Knightscope go up and down completely randomly.
Pair Corralation between Lantronix and Knightscope
Given the investment horizon of 90 days Lantronix is expected to under-perform the Knightscope. But the stock apears to be less risky and, when comparing its historical volatility, Lantronix is 1.96 times less risky than Knightscope. The stock trades about -0.01 of its potential returns per unit of risk. The Knightscope is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,530 in Knightscope on November 3, 2024 and sell it today you would lose (1,479) from holding Knightscope or give up 58.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lantronix vs. Knightscope
Performance |
| Timeline |
| Lantronix |
| Knightscope |
Lantronix and Knightscope Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lantronix and Knightscope
The main advantage of trading using opposite Lantronix and Knightscope positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantronix position performs unexpectedly, Knightscope 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 Knightscope will offset losses from the drop in Knightscope's long position.| Lantronix vs. LightPath Technologies | Lantronix vs. Identiv | Lantronix vs. VOXX International | Lantronix vs. BOS Better Online |
| Knightscope vs. LogicMark | Knightscope vs. Guardforce AI Co | Knightscope vs. Bridger Aerospace Group | Knightscope vs. Iveda Solutions |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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