Correlation Between Lantronix and One Stop

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

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

Diversification Opportunities for Lantronix and One Stop

0.91

Correlation Coefficient

Lantronix  One Stop

Almost no diversification

The 3 months correlation between Lantronix and One is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Lantronix and One Stop Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Stop Systems 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 One Stop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Stop Systems has no effect on the direction of Lantronix i.e., Lantronix and One Stop go up and down completely randomly.

Pair Corralation between Lantronix and One Stop

Given the investment horizon of 90 days Lantronix is expected to generate 2.02 times less return on investment than One Stop. But when comparing it to its historical volatility, Lantronix is 1.6 times less risky than One Stop. It trades about 0.19 of its potential returns per unit of risk. One Stop Systems is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  261.00  in One Stop Systems on May 11, 2025 and sell it today you would earn a total of  286.00  from holding One Stop Systems or generate 109.58% return on investment over 90 days.

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

Lantronix  vs.  One Stop Systems

Lantronix

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lantronix are ranked lower than 14 (%) 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.

One Stop Systems

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in One Stop Systems are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, One Stop unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lantronix and One Stop

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

The idea behind Lantronix and One Stop Systems 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.