Correlation Between Lantronix and Luna Innovations
Can any of the company-specific risk be diversified away by investing in both Lantronix and Luna Innovations 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 Luna Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lantronix and Luna Innovations Incorporated, you can compare the effects of market volatilities on Lantronix and Luna Innovations 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 Luna Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lantronix and Luna Innovations.
Diversification Opportunities for Lantronix and Luna Innovations
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lantronix and Luna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lantronix and Luna Innovations Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luna Innovations 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 Luna Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luna Innovations has no effect on the direction of Lantronix i.e., Lantronix and Luna Innovations go up and down completely randomly.
Pair Corralation between Lantronix and Luna Innovations
If you would invest 220.00 in Lantronix on June 3, 2025 and sell it today you would earn a total of 277.00 from holding Lantronix or generate 125.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lantronix vs. Luna Innovations Incorporated
Performance |
| Timeline |
| Lantronix |
| Luna Innovations |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Lantronix and Luna Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lantronix and Luna Innovations
The main advantage of trading using opposite Lantronix and Luna Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantronix position performs unexpectedly, Luna Innovations 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 Luna Innovations will offset losses from the drop in Luna Innovations' long position.| Lantronix vs. Airgain | Lantronix vs. CAMP4 THERAPEUTICS PORATION | Lantronix vs. LightPath Technologies | Lantronix vs. Identiv |
| Luna Innovations vs. Genasys | Luna Innovations vs. Sensata Technologies Holding | Luna Innovations vs. Focus Universal | Luna Innovations vs. Mesa Laboratories |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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