Correlation Between Minim and Lumentum Holdings
Can any of the company-specific risk be diversified away by investing in both Minim and Lumentum Holdings 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 Minim and Lumentum Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minim Inc and Lumentum Holdings, you can compare the effects of market volatilities on Minim and Lumentum Holdings 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 Minim with a short position of Lumentum Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minim and Lumentum Holdings.
Diversification Opportunities for Minim and Lumentum Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Minim and Lumentum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Minim Inc and Lumentum Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumentum Holdings and Minim 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 Minim Inc are associated (or correlated) with Lumentum Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumentum Holdings has no effect on the direction of Minim i.e., Minim and Lumentum Holdings go up and down completely randomly.
Pair Corralation between Minim and Lumentum Holdings
If you would invest 5,265 in Lumentum Holdings on November 9, 2024 and sell it today you would earn a total of 4,002 from holding Lumentum Holdings or generate 76.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Minim Inc vs. Lumentum Holdings
Performance |
| Timeline |
| Minim Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Lumentum Holdings |
Minim and Lumentum Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minim and Lumentum Holdings
The main advantage of trading using opposite Minim and Lumentum Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minim position performs unexpectedly, Lumentum Holdings 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 Lumentum Holdings will offset losses from the drop in Lumentum Holdings' long position.| Minim vs. Frequency Electronics | Minim vs. Amplitech Group | Minim vs. Optical Cable | Minim vs. Mobilicom Limited American |
| Lumentum Holdings vs. Telesat Corp | Lumentum Holdings vs. Comtech Telecommunications Corp | Lumentum Holdings vs. Knowles Cor | Lumentum Holdings vs. Ituran Location and |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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