Correlation Between Lantronix and Inseego Corp

Can any of the company-specific risk be diversified away by investing in both Lantronix and Inseego Corp 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 Inseego Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lantronix and Inseego Corp, you can compare the effects of market volatilities on Lantronix and Inseego Corp 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 Inseego Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lantronix and Inseego Corp.

Diversification Opportunities for Lantronix and Inseego Corp

0.02

Correlation Coefficient

Lantronix  Inseego Corp

Significant diversification

The 3 months correlation between Lantronix and Inseego is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Lantronix and Inseego Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inseego Corp 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 Inseego Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inseego Corp has no effect on the direction of Lantronix i.e., Lantronix and Inseego Corp go up and down completely randomly.

Pair Corralation between Lantronix and Inseego Corp

Given the investment horizon of 90 days Lantronix is expected to generate 1.05 times more return on investment than Inseego Corp. However, Lantronix is 1.05 times more volatile than Inseego Corp. It trades about 0.1 of its potential returns per unit of risk. Inseego Corp is currently generating about -0.02 per unit of risk. If you would invest  469.00  in Lantronix on September 10, 2025 and sell it today you would earn a total of  112.00  from holding Lantronix or generate 23.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Lantronix  vs.  Inseego Corp

Lantronix

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Lantronix are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Lantronix showed solid returns over the last few months and may actually be approaching a breakup point.

Inseego Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Inseego Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Lantronix and Inseego Corp

The main advantage of trading using opposite Lantronix and Inseego Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantronix position performs unexpectedly, Inseego Corp 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 Inseego Corp will offset losses from the drop in Inseego Corp's long position.

The idea behind Lantronix and Inseego Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.