Correlation Between Lumentum Holdings and ScanTech
Can any of the company-specific risk be diversified away by investing in both Lumentum Holdings and ScanTech 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 Lumentum Holdings and ScanTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumentum Holdings and ScanTech AI Systems, you can compare the effects of market volatilities on Lumentum Holdings and ScanTech 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 Lumentum Holdings with a short position of ScanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumentum Holdings and ScanTech.
Diversification Opportunities for Lumentum Holdings and ScanTech
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lumentum and ScanTech is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Lumentum Holdings and ScanTech AI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanTech AI Systems and Lumentum Holdings 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 Lumentum Holdings are associated (or correlated) with ScanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanTech AI Systems has no effect on the direction of Lumentum Holdings i.e., Lumentum Holdings and ScanTech go up and down completely randomly.
Pair Corralation between Lumentum Holdings and ScanTech
Given the investment horizon of 90 days Lumentum Holdings is expected to generate 0.49 times more return on investment than ScanTech. However, Lumentum Holdings is 2.02 times less risky than ScanTech. It trades about 0.39 of its potential returns per unit of risk. ScanTech AI Systems is currently generating about -0.24 per unit of risk. If you would invest 5,904 in Lumentum Holdings on April 30, 2025 and sell it today you would earn a total of 4,813 from holding Lumentum Holdings or generate 81.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Lumentum Holdings vs. ScanTech AI Systems
Performance |
Timeline |
Lumentum Holdings |
ScanTech AI Systems |
Lumentum Holdings and ScanTech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lumentum Holdings and ScanTech
The main advantage of trading using opposite Lumentum Holdings and ScanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumentum Holdings position performs unexpectedly, ScanTech 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 ScanTech will offset losses from the drop in ScanTech's long position.Lumentum Holdings vs. Viavi Solutions | Lumentum Holdings vs. Ciena Corp | Lumentum Holdings vs. Applied Opt | Lumentum Holdings vs. Qorvo Inc |
ScanTech vs. Gevo Inc | ScanTech vs. The Mosaic | ScanTech vs. Sensient Technologies | ScanTech vs. Lifevantage |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |