Correlation Between VOXX International and Lantronix
Can any of the company-specific risk be diversified away by investing in both VOXX International 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 VOXX International and Lantronix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VOXX International and Lantronix, you can compare the effects of market volatilities on VOXX International 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 VOXX International with a short position of Lantronix. Check out your portfolio center. Please also check ongoing floating volatility patterns of VOXX International and Lantronix.
Diversification Opportunities for VOXX International and Lantronix
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between VOXX and Lantronix is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding VOXX International and Lantronix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lantronix and VOXX International 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 VOXX International 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 VOXX International i.e., VOXX International and Lantronix go up and down completely randomly.
Pair Corralation between VOXX International and Lantronix
Given the investment horizon of 90 days VOXX International is expected to generate 0.65 times more return on investment than Lantronix. However, VOXX International is 1.53 times less risky than Lantronix. It trades about 0.04 of its potential returns per unit of risk. Lantronix is currently generating about -0.18 per unit of risk. If you would invest 756.00 in VOXX International on August 24, 2024 and sell it today you would earn a total of 18.00 from holding VOXX International or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VOXX International vs. Lantronix
Performance |
| Timeline |
| VOXX International |
| Lantronix |
VOXX International and Lantronix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VOXX International and Lantronix
The main advantage of trading using opposite VOXX International and Lantronix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VOXX International 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.| VOXX International vs. LG Display Co | VOXX International vs. Vizio Holding Corp | VOXX International vs. Turtle Beach Corp | VOXX International vs. Emerson Radio |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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