Correlation Between MaxLinear and Digi International

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

By analyzing existing cross correlation between MaxLinear and Digi International, you can compare the effects of market volatilities on MaxLinear and Digi International 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 MaxLinear with a short position of Digi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of MaxLinear and Digi International.

Diversification Opportunities for MaxLinear and Digi International

0.56

Correlation Coefficient

MaxLinear  Digi International

Very weak diversification

The 3 months correlation between MaxLinear and Digi is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding MaxLinear and Digi International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digi International and MaxLinear 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 MaxLinear are associated (or correlated) with Digi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digi International has no effect on the direction of MaxLinear i.e., MaxLinear and Digi International go up and down completely randomly.

Pair Corralation between MaxLinear and Digi International

Considering the 90-day investment horizon MaxLinear is expected to generate 1.95 times less return on investment than Digi International. In addition to that, MaxLinear is 1.98 times more volatile than Digi International. It trades about 0.05 of its total potential returns per unit of risk. Digi International is currently generating about 0.18 per unit of volatility. If you would invest  3,592  in Digi International on September 16, 2025 and sell it today you would earn a total of  959.00  from holding Digi International or generate 26.7% return on investment over 90 days.

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

MaxLinear  vs.  Digi International

MaxLinear

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in MaxLinear are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, MaxLinear may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Digi International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Digi International are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Digi International demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MaxLinear and Digi International

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

The idea behind MaxLinear and Digi International 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.