Correlation Between Lumentum Holdings and BrightView Holdings
Can any of the company-specific risk be diversified away by investing in both Lumentum Holdings and BrightView 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 Lumentum Holdings and BrightView Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumentum Holdings and BrightView Holdings, you can compare the effects of market volatilities on Lumentum Holdings and BrightView 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 Lumentum Holdings with a short position of BrightView Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumentum Holdings and BrightView Holdings.
Diversification Opportunities for Lumentum Holdings and BrightView Holdings
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lumentum and BrightView is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Lumentum Holdings and BrightView Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrightView Holdings 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 BrightView Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrightView Holdings has no effect on the direction of Lumentum Holdings i.e., Lumentum Holdings and BrightView Holdings go up and down completely randomly.
Pair Corralation between Lumentum Holdings and BrightView Holdings
Assuming the 90 days trading horizon Lumentum Holdings is expected to generate 3.06 times more return on investment than BrightView Holdings. However, Lumentum Holdings is 3.06 times more volatile than BrightView Holdings. It trades about 0.24 of its potential returns per unit of risk. BrightView Holdings is currently generating about -0.17 per unit of risk. If you would invest 11,715 in Lumentum Holdings on August 19, 2025 and sell it today you would earn a total of 11,533 from holding Lumentum Holdings or generate 98.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Lumentum Holdings vs. BrightView Holdings
Performance |
| Timeline |
| Lumentum Holdings |
| BrightView Holdings |
Lumentum Holdings and BrightView Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumentum Holdings and BrightView Holdings
The main advantage of trading using opposite Lumentum Holdings and BrightView Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumentum Holdings position performs unexpectedly, BrightView 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 BrightView Holdings will offset losses from the drop in BrightView Holdings' long position.| Lumentum Holdings vs. Berkshire Hathaway | Lumentum Holdings vs. Samsung Electronics Co | Lumentum Holdings vs. Samsung Electronics Co | Lumentum Holdings vs. Samsung Electronics Co |
| BrightView Holdings vs. Resolute Holdings Management, | BrightView Holdings vs. Pursuit Attractions and | BrightView Holdings vs. PROG Holdings | BrightView Holdings vs. Allegiant Travel |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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