Lumentum Holdings Stock Market Value
| LITE Stock | USD 83.77 3.21 3.69% |
| Symbol | Lumentum |
Lumentum Holdings Price To Book Ratio
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lumentum Holdings. If investors know Lumentum will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lumentum Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.711 | Earnings Share (8.31) | Revenue Per Share 20.362 | Quarterly Revenue Growth 0.061 | Return On Assets (0.05) |
The market value of Lumentum Holdings is measured differently than its book value, which is the value of Lumentum that is recorded on the company's balance sheet. Investors also form their own opinion of Lumentum Holdings' value that differs from its market value or its book value, called intrinsic value, which is Lumentum Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lumentum Holdings' market value can be influenced by many factors that don't directly affect Lumentum Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lumentum Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lumentum Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lumentum Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Lumentum Holdings 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Lumentum Holdings' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Lumentum Holdings.
| 12/09/2022 |
| 11/28/2024 |
If you would invest 0.00 in Lumentum Holdings on December 9, 2022 and sell it all today you would earn a total of 0.00 from holding Lumentum Holdings or generate 0.0% return on investment in Lumentum Holdings over 720 days. Lumentum Holdings is related to or competes with NETGEAR, KVH Industries, Telesat Corp, Juniper Networks, Infinera, Extreme Networks, and Clearfield. Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, t... More
Lumentum Holdings Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Lumentum Holdings' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Lumentum Holdings upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.62 | |||
| Information Ratio | 0.1482 | |||
| Maximum Drawdown | 18.19 | |||
| Value At Risk | (4.32) | |||
| Potential Upside | 5.71 |
Lumentum Holdings Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Lumentum Holdings' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Lumentum Holdings' standard deviation. In reality, there are many statistical measures that can use Lumentum Holdings historical prices to predict the future Lumentum Holdings' volatility.| Risk Adjusted Performance | 0.1497 | |||
| Jensen Alpha | 0.2989 | |||
| Total Risk Alpha | 0.1074 | |||
| Sortino Ratio | 0.192 | |||
| Treynor Ratio | 0.2235 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Lumentum Holdings' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Lumentum Holdings Backtested Returns
Lumentum Holdings appears to be very steady, given 3 months investment horizon. Lumentum Holdings has Sharpe Ratio of 0.19, which conveys that the firm had a 0.19% return per unit of risk over the last 3 months. By analyzing Lumentum Holdings' technical indicators, you can evaluate if the expected return of 0.64% is justified by implied risk. Please exercise Lumentum Holdings' Risk Adjusted Performance of 0.1497, mean deviation of 2.47, and Downside Deviation of 2.62 to check out if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Lumentum Holdings holds a performance score of 14. The company secures a Beta (Market Risk) of 2.76, which conveys a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Lumentum Holdings will likely underperform. Please check Lumentum Holdings' sortino ratio, skewness, price action indicator, as well as the relationship between the potential upside and rate of daily change , to make a quick decision on whether Lumentum Holdings' current price movements will revert.
Auto-correlation | -0.46 |
Modest reverse predictability
Lumentum Holdings has modest reverse predictability. Overlapping area represents the amount of predictability between Lumentum Holdings time series from 9th of December 2022 to 4th of December 2023 and 4th of December 2023 to 28th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Lumentum Holdings price movement. The serial correlation of -0.46 indicates that about 46.0% of current Lumentum Holdings price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.46 | |
| Spearman Rank Test | -0.33 | |
| Residual Average | 0.0 | |
| Price Variance | 103.19 |
Lumentum Holdings lagged returns against current returns
Autocorrelation, which is Lumentum Holdings stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Lumentum Holdings' stock expected returns. We can calculate the autocorrelation of Lumentum Holdings returns to help us make a trade decision. For example, suppose you find that Lumentum Holdings has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
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Lumentum Holdings regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Lumentum Holdings stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Lumentum Holdings stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Lumentum Holdings stock over time.
Current vs Lagged Prices |
| Timeline |
Lumentum Holdings Lagged Returns
When evaluating Lumentum Holdings' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Lumentum Holdings stock have on its future price. Lumentum Holdings autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Lumentum Holdings autocorrelation shows the relationship between Lumentum Holdings stock current value and its past values and can show if there is a momentum factor associated with investing in Lumentum Holdings.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Lumentum Holdings is a strong investment it is important to analyze Lumentum Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lumentum Holdings' future performance. For an informed investment choice regarding Lumentum Stock, refer to the following important reports:Check out Lumentum Holdings Correlation, Lumentum Holdings Volatility and Lumentum Holdings Alpha and Beta module to complement your research on Lumentum Holdings. For information on how to trade Lumentum Stock refer to our How to Trade Lumentum Stock guide.You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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.