Correlation Between Lumentum Holdings and Quarterhill
Can any of the company-specific risk be diversified away by investing in both Lumentum Holdings and Quarterhill 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 Quarterhill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumentum Holdings and Quarterhill, you can compare the effects of market volatilities on Lumentum Holdings and Quarterhill 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 Quarterhill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumentum Holdings and Quarterhill.
Diversification Opportunities for Lumentum Holdings and Quarterhill
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lumentum and Quarterhill is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lumentum Holdings and Quarterhill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quarterhill 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 Quarterhill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quarterhill has no effect on the direction of Lumentum Holdings i.e., Lumentum Holdings and Quarterhill go up and down completely randomly.
Pair Corralation between Lumentum Holdings and Quarterhill
If you would invest 5,106 in Lumentum Holdings on September 1, 2024 and sell it today you would earn a total of 3,591 from holding Lumentum Holdings or generate 70.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
Lumentum Holdings vs. Quarterhill
Performance |
| Timeline |
| Lumentum Holdings |
| Quarterhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lumentum Holdings and Quarterhill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumentum Holdings and Quarterhill
The main advantage of trading using opposite Lumentum Holdings and Quarterhill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumentum Holdings position performs unexpectedly, Quarterhill 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 Quarterhill will offset losses from the drop in Quarterhill's long position.| Lumentum Holdings vs. NETGEAR | Lumentum Holdings vs. KVH Industries | Lumentum Holdings vs. Telesat Corp | Lumentum Holdings vs. Juniper Networks |
| Quarterhill vs. Edgewater Wireless Systems | Quarterhill vs. Airgain | Quarterhill vs. Optical Cable | Quarterhill vs. Lantronix |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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