Lumentum Holdings (Germany) Alpha and Beta Analysis
| LU2 Stock | EUR 609.60 42.40 7.48% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Lumentum Holdings. It also helps investors analyze the systematic and unsystematic risks associated with investing in Lumentum Holdings over a specified time horizon. Remember, high Lumentum Holdings' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Lumentum Holdings' market risk premium analysis include:
Beta 0.86 | Alpha 1.68 | Risk 5.53 | Sharpe Ratio 0.26 | Expected Return 1.45 |
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Lumentum |
Lumentum Holdings Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Lumentum Holdings market risk premium is the additional return an investor will receive from holding Lumentum Holdings long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Lumentum Holdings. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Lumentum Holdings' performance over market.| α | 1.68 | β | 0.86 |
Lumentum Holdings expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Lumentum Holdings' Buy-and-hold return. Our buy-and-hold chart shows how Lumentum Holdings performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Lumentum Holdings Market Price Analysis
Market price analysis indicators help investors to evaluate how Lumentum Holdings stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Lumentum Holdings shares will generate the highest return on investment. By understating and applying Lumentum Holdings stock market price indicators, traders can identify Lumentum Holdings position entry and exit signals to maximize returns.
Lumentum Holdings Return and Market Media
The median price of Lumentum Holdings for the period between Fri, Nov 28, 2025 and Thu, Feb 26, 2026 is 310.5 with a coefficient of variation of 27.4. The daily time series for the period is distributed with a sample standard deviation of 92.45, arithmetic mean of 337.35, and mean deviation of 71.66. The Stock received a lot of media exposure during the period. Price Growth (%) |
| Timeline |
1 | The Zacks Analyst Blog Highlights Monster Beverage, MongoDB and Lumentum - The Globe and Mail | 12/09/2025 |
2 | Lumentum Shares Jump 10 percent After Key Trading Signal - Benzinga | 01/06/2026 |
3 | Lumentum Holdings Inc. LITE Shares Sold by Emerald Advisers LLC - MarketBeat | 01/22/2026 |
4 | Strs Ohio Sells ,321 Shares of Lumentum Holdings Inc. LITE - MarketBeat | 01/27/2026 |
5 | Lumentum Holdings Inc. LITE Shares Acquired by Federated Hermes Inc. - MarketBeat | 01/30/2026 |
6 | A Look At Lumentum Holdings Valuation After Q2 Profit Return And Strong Revenue Guidance - simplywall.st | 02/03/2026 |
7 | Lumentum Soars to All-Time High on Strong Earnings - Yahoo Finance | 02/06/2026 |
8 | When Should You Buy Lumentum Holdings Inc. - Yahoo Finance | 02/09/2026 |
9 | Why Lumentum Wins Over Coherent - Seeking Alpha | 02/18/2026 |
10 | The Zacks Analyst Blog Highlights Amphenol, Western Digital, Vertiv, Lumentum and EMCOR - The Globe and Mail | 02/24/2026 |
About Lumentum Holdings Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Lumentum or other stocks. Alpha measures the amount that position in Lumentum Holdings has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Lumentum Holdings in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Lumentum Holdings' short interest history, or implied volatility extrapolated from Lumentum Holdings options trading.
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Check out Lumentum Holdings Analysis, Lumentum Holdings Valuation, Lumentum Holdings Correlation, Lumentum Holdings Hype Analysis, Lumentum Holdings Volatility, Lumentum Holdings Price History and analyze Lumentum Holdings Performance. For more detail on how to invest in Lumentum Stock please use our How to Invest in Lumentum Holdings guide.You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Lumentum Holdings technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.