Correlation Between Lantronix and Oxbridge

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

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

Diversification Opportunities for Lantronix and Oxbridge

0.63

Correlation Coefficient

Lantronix  Oxbridge

Poor diversification

The 3 months correlation between Lantronix and Oxbridge is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lantronix and Oxbridge Re Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxbridge Re Holdings 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 Oxbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxbridge Re Holdings has no effect on the direction of Lantronix i.e., Lantronix and Oxbridge go up and down completely randomly.

Pair Corralation between Lantronix and Oxbridge

Given the investment horizon of 90 days Lantronix is expected to generate 0.46 times more return on investment than Oxbridge. However, Lantronix is 2.16 times less risky than Oxbridge. It trades about 0.14 of its potential returns per unit of risk. Oxbridge Re Holdings is currently generating about 0.02 per unit of risk. If you would invest  221.00  in Lantronix on May 4, 2025 and sell it today you would earn a total of  73.00  from holding Lantronix or generate 33.03% return on investment over 90 days.

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

Lantronix  vs.  Oxbridge Re Holdings

Lantronix

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lantronix are ranked lower than 10 (%) 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.

Oxbridge Re Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Oxbridge Re Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal fundamental drivers, Oxbridge may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Lantronix and Oxbridge

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

The idea behind Lantronix and Oxbridge Re Holdings 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.