Correlation Between Lantronix and Airgain
Can any of the company-specific risk be diversified away by investing in both Lantronix and Airgain 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 Airgain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lantronix and Airgain, you can compare the effects of market volatilities on Lantronix and Airgain 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 Airgain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lantronix and Airgain.
Diversification Opportunities for Lantronix and Airgain
Average diversification
The 3 months correlation between Lantronix and Airgain is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lantronix and Airgain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgain 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 Airgain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airgain has no effect on the direction of Lantronix i.e., Lantronix and Airgain go up and down completely randomly.
Pair Corralation between Lantronix and Airgain
Given the investment horizon of 90 days Lantronix is expected to generate 1.67 times more return on investment than Airgain. However, Lantronix is 1.67 times more volatile than Airgain. It trades about 0.23 of its potential returns per unit of risk. Airgain is currently generating about 0.04 per unit of risk. If you would invest 244.00 in Lantronix on June 9, 2025 and sell it today you would earn a total of 228.00 from holding Lantronix or generate 93.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lantronix vs. Airgain
Performance |
| Timeline |
| Lantronix |
| Airgain |
Lantronix and Airgain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lantronix and Airgain
The main advantage of trading using opposite Lantronix and Airgain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantronix position performs unexpectedly, Airgain 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 Airgain will offset losses from the drop in Airgain's long position.| Lantronix vs. Airgain | Lantronix vs. CAMP4 THERAPEUTICS PORATION | Lantronix vs. LightPath Technologies | Lantronix vs. Identiv |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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