LITE vs COHR: Stock Returns, Risk & Volatility (2026)

Q: Which is a better investment: LITE or COHR?

Over the past year, LITE looks like the better investment: it had higher total return (LITE +1613.7% vs COHR +447.7%) and a higher Sharpe ratio (LITE 3.98 vs COHR 2.81). On risk, COHR was less volatile (COHR 68.5% vs LITE 79.7%), COHR had a smaller max drawdown (COHR -26.5% vs LITE -28.7%), and COHR had less severe losses on the worst 5% of days (Expected Shortfall of COHR -10.01% vs LITE -10.68%).

Written by Gale Finance Team

Reviewed by Sid Kalla CFA Charterholder

Quick answer

Which is a better investment: LITE or COHR?

Over the past year, LITE outperformed (+1613.7% vs +447.7%) with a Sharpe ratio of 3.98.

Total Return

LITE WIN +1613.7%

COHR +447.7%

Sharpe Ratio

LITE WIN 3.98

COHR 2.81

Annualized Volatility

LITE 79.7%

COHR WIN 68.5%

Max Drawdown

LITE -28.7%

COHR WIN -26.5%

Analysis period: 2025-04-14 to 2026-04-10

LITE Total Return

↑ +1613.7%

COHR Total Return

↑ +447.7%

Relative Performance of LITE vs COHR (Normalized to 100)

LITE COHR

Normalized to 100 at start date for comparison

Key Takeaways

Total Return: LITE delivered a +1613.7% total return, while COHR returned +447.7% over the same period. LITE outperformed on total returns.
Risk-Adjusted Return (Sharpe Ratio): LITE had a higher Sharpe (3.98 vs 2.81), indicating better risk-adjusted performance.
Volatility (Annualized): LITE was more volatile, with 79.7% annualized volatility, versus 68.5% for COHR.
Maximum Drawdown: COHR's maximum drawdown was -26.5%, while LITE experienced a deeper drawdown of -28.7%.
Tail Risk (VaR & Expected Shortfall): At the 5% level (daily log returns), LITE's VaR was -7.07% and its Expected Shortfall (CVaR) was -10.68%; COHR's were -6.25% and -10.01%. VaR is the cutoff; Expected Shortfall is the average move on the worst days.
Skew & Kurtosis: Skew: LITE -0.12 vs COHR -0.56. Excess kurtosis: LITE 1.79 vs COHR 3.56. Negative skew leans downside; higher excess kurtosis means fatter tails.
Tail Days & Extremes: 2σ tail days (down/up): LITE 8/4, COHR 10/4. Worst day: LITE -14.19% (2026-03-06) vs COHR -19.61% (2025-08-14). Best day: LITE +23.57% (2025-11-05) vs COHR +18.32% (2025-11-06).
Risk ratios: Sortino - LITE: 6.94 vs. COHR: 4.42 , Calmar - LITE: 58.25 vs. COHR: 17.30 , Sterling - LITE: 101.59 vs. COHR: 25.60 , Treynor - LITE: 1.24 vs. COHR: 0.70 , Ulcer Index - LITE: 6.52% vs. COHR: 9.21%

Lumentum Holdings vs Coherent Corp. Correlation

0.69 Average Correlation

Lumentum Holdings and Coherent Corp. are strongly correlated over the past year. With a correlation of 0.69, these assets tend to move together, limiting diversification benefits.

For portfolio construction, this strong correlation means holding both LITE and COHR provides limited risk reduction — they're likely to decline together in downturns.

Metric	Value
Current (30-day)	0.87
Average (full period)	0.69
Minimum	0.47
Maximum	0.90

Correlation measures how closely two assets move together. Values near +1 indicate strong co-movement, near 0 indicates independence, and negative values indicate inverse movement.

Investment Comparison

If you invested $10,000 in each asset on April 14, 2025:

LITE $171,371.28 +1613.7%

COHR $54,773.78 +447.7%

Difference: $116,597.5 (LITE ahead)

Lumentum Holdings and Coherent Corp.: Risk Analysis

Lumentum Holdings experienced its maximum drawdown of -28.7% from 2026-03-02 to 2026-03-06. It took 18 days to recover.

Coherent Corp. experienced its maximum drawdown of -26.5% from 2026-03-02 to 2026-03-30. It took 11 days to recover.

Smaller drawdowns and faster recoveries indicate lower downside risk and greater resilience during market stress.

Sharpe Ratio of LITE and COHR

LITE Sharpe Ratio

↑ 3.98

COHR Sharpe Ratio

↑ 2.81

Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. LITE had a higher Sharpe (3.98 vs 2.81), indicating better risk-adjusted performance.

A Sharpe above 1.0 is generally considered good, above 2.0 is excellent. Negative Sharpe means the asset underperformed the risk-free rate. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Sortino Ratio of LITE and COHR

LITE Sortino Ratio

↑ 6.94

COHR Sortino Ratio

↑ 4.42

Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only counts downside deviation (returns below the target return). LITE had better downside-adjusted returns.

A higher Sortino is better. It's useful when upside volatility is common (crypto is the obvious example). Downside deviation: LITE 45.7% vs COHR 43.6%. Calculated on each asset's full 365-day lookback of available prices, using the daily risk-free rate as the target return, and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Calmar Ratio of LITE and COHR

LITE Calmar Ratio

↑ 58.25

COHR Calmar Ratio

↑ 17.30

Calmar ratio compares CAGR to maximum drawdown. Higher Calmar means more return per unit of worst drawdown. LITE posted the higher Calmar ratio.

Calmar is computed on each asset's full 365-day lookback and uses the max drawdown over that same window.

Sterling Ratio of LITE and COHR

LITE Sterling Ratio

↑ 101.59

COHR Sterling Ratio

↑ 25.60

Sterling ratio measures excess return per unit of average drawdown (typically drawdowns worse than 10%). LITE posted the higher Sterling ratio.

Sterling uses average drawdown events deeper than 10% and subtracts the risk-free rate to report excess return.

Treynor Ratio of LITE and COHR

LITE Treynor Ratio

↑ 1.24

COHR Treynor Ratio

↑ 0.70

Treynor ratio measures excess return per unit of market risk (beta) instead of total volatility. LITE posted the higher Treynor ratio.

Treynor uses beta vs the S&P 500 (SPY) on shared dates and the average 3-month Treasury rate as the risk-free rate.

Ulcer Index of LITE and COHR

LITE Ulcer Index

6.52%

COHR Ulcer Index

9.21%

Ulcer Index captures drawdown depth and duration. Lower Ulcer Index means less drawdown pain. LITE had the lower Ulcer Index (less drawdown pain).

Ulcer Index is computed from each asset's drawdown series over the full lookback window.

Tail Risk & Distribution Shape (1-Year): Lumentum Holdings vs. Coherent Corp.

This section looks at the shape of daily returns, not just the average. Tail stats are computed per asset on its own daily series (crypto includes weekends). We use daily log returns $\ln\left(\frac{P_t}{P_{t-1}}\right)$ so multi-day moves add cleanly.

Definitions: Value at Risk (VaR), Expected Shortfall, skew, kurtosis, and fat tails.

Metric (1-Year)	LITE	COHR
5% VaR (daily log return)	-7.07%	-6.25%
5% Expected Shortfall (CVaR)	-10.68% (worst 13 days)	-10.01% (worst 13 days)
Skew	-0.12	-0.56
Excess kurtosis	1.79	3.56
2σ tail days (down / up)	8 / 4	10 / 4
Worst day	-14.19% (2026-03-06)	-19.61% (2025-08-14)
Best day	+23.57% (2025-11-05)	+18.32% (2025-11-06)

Downside co-moves (2σ) — 1-Year

Computed on shared dates only (n=248). A “2σ downside move” means a shared-close log return more than 2 standard deviations below that asset’s own mean on this shared-date series. Dates below show simple returns (%) for readability.

When COHR has a big down day, LITE also does

50.0%

5 / 10 days

When LITE has a big down day, COHR also does

62.5%

5 / 8 days

Show downside tail dates

Dates below are shared-date observations. The “Date” is the period end (close). Tail thresholds are computed on log returns, but the table shows simple returns (%) for readability. Returns are computed from the previous shared close to this one (for example, Friday → Monday includes weekend moves).

Days when both LITE and COHR had a big down day (2σ)

Date (interval)	LITE	COHR
2025-11-13	-10.62%	-10.66%
2025-12-12	-12.83%	-10.16%
2026-01-08	-11.36%	-9.64%
2026-03-20	-8.52%	-7.96%
2026-03-26	-11.37%	-10.57%

Days when LITE had a big down day

Date (interval)	LITE	COHR
2025-11-13	-10.62%	-10.66%
2025-11-20	-13.27%	-5.13%
2025-12-12	-12.83%	-10.16%
2026-01-08	-11.36%	-9.64%
2026-03-03	-11.34%	-6.06%
2026-03-06	-14.19%	-7.15%
2026-03-20	-8.52%	-7.96%
2026-03-26	-11.37%	-10.57%

Days when COHR had a big down day

Date (interval)	LITE	COHR
2025-08-14	-4.67%	-19.61%
2025-10-10	-6.35%	-9.19%
2025-11-13	-10.62%	-10.66%
2025-12-12	-12.83%	-10.16%
2026-01-08	-11.36%	-9.64%
2026-02-04	+7.00%	-7.93%
2026-03-05	-4.40%	-7.64%
2026-03-20	-8.52%	-7.96%
2026-03-26	-11.37%	-10.57%
2026-03-27 → 2026-03-30	-6.82%	-9.79%

Read this as “how ugly the ugly days get”, not as a precise forecast. One-year samples are small, so tail estimates are inherently noisy.

Lumentum Holdings vs Coherent Corp. Volatility (LITE vs COHR)

LITE Volatility

79.7%

±5.02% daily

COHR Volatility

68.5%

±4.31% daily

Typical daily swing

LITE

±5.02%

COHR

±4.31%

Lumentum Holdings's annualized volatility of 79.7% means it typically moves ±5.02% on any given day.

Coherent Corp.'s annualized volatility of 68.5% means it typically moves ±4.31% on any given day.

LITE's higher volatility means a wider path to returns — this can be attractive for tactical, shorter-term exposure, while COHR's smoother profile may better suit long-term allocators seeking steadier growth.

For comparison, the S&P 500 typically has 15-18% annualized volatility, translating to roughly ±1% daily moves. Higher volatility means larger potential gains but also larger potential losses.

Lumentum Holdings vs Coherent Corp. Performance Over Time

Metric	LITE	COHR
30 Days	33.5%	22.3%
90 Days	155.3%	72.7%
180 Days	499.8%	176.8%
1 Year	1613.7%	447.7%

Shorter time frames can show different leaders as market conditions change. Consider your investment horizon when comparing performance.

Full Comparison of Lumentum Holdings vs. Coherent Corp. (1-Year)

Metric	LITE	COHR
Total Return	+1613.7%	+447.7%
Annualized Volatility	79.7%	68.5%
Sharpe Ratio	3.98	2.81
Sortino Ratio	6.94	4.42
Calmar Ratio	58.25	17.30
Sterling Ratio	101.59	25.60
Treynor Ratio	1.24	0.70
Ulcer Index	6.52%	9.21%
Max Drawdown	-28.7%	-26.5%
Avg Correlation to S&P 500	0.46	0.49
5% VaR (daily log return)	-7.07%	-6.25%
5% Expected Shortfall (CVaR)	-10.68%	-10.01%
Skew	-0.12	-0.56
Excess kurtosis	1.79	3.56
2σ tail days (down / up)	8 / 4	10 / 4

Audit this calculation

Formulas, inputs, and conventions used to compute the metrics on this page.

Inputs & conventions

Shared window for pair metrics: 2025-04-14 → 2026-04-10 (last shared close).
Rolling correlation sample (shared closes): 219 rolling 30-day values (from 248 shared daily returns).
Annualization (days/year): LITE: 252 days/year; COHR: 252 days/year.
Risk-free rate: Uses the 3-month U.S. Treasury yield (FRED: DGS3MO), averaged over each asset’s window:

LITE: 4.17% over 2025-04-14 → 2026-04-10.

COHR: 4.17% over 2025-04-14 → 2026-04-10.
Volatility drag (rule of thumb): Estimated from annualized volatility (simple returns). For the log-return framing, see Log returns.

LITE: ≈ -31.8%/yr

COHR: ≈ -23.5%/yr
Data alignment: No forward fill. Correlation and tail co-moves are computed on shared closes only.
For cross-calendar pairs (e.g., crypto vs stocks), weekend/holiday moves roll into the next shared close.
Return conventions: Volatility/Sharpe/Sortino use simple daily returns. Tail-risk uses daily log returns for distribution stats (but tables show simple returns). Log returns.

Formulas

Daily simple return

r_t = \frac{P_t}{P_{t-1}} - 1

Volatility

\sigma_{ann} = \sigma(r_t)\sqrt{A}

Volatility drag (approx.)

\text{drag} \approx \tfrac{1}{2}\sigma_{ann}^2

Sharpe Ratio

S = \frac{A\,\bar{r} - r_f}{\sigma(r_t)\sqrt{A}}

Sortino Ratio

So = \frac{A\,\bar{r} - r_f}{\sqrt{\mathbb{E}[\min(0,\,r_t - r_f/A)^2]}\,\sqrt{A}}

Maximum Drawdown

MDD = \min_t\left(\frac{P_t}{\max_{s \le t} P_s} - 1\right)

Average Correlation

\rho = \frac{\operatorname{cov}(r^A,\,r^B)}{\sigma_A\,\sigma_B}

Log returns

\ell_t = \ln\left(\frac{P_t}{P_{t-1}}\right)

Notation

$P_t$: Price on day t.
$r_t$: Simple daily return.
$\ell_t$: Log daily return.
$\bar{r}$: Average daily return.
$\sigma(r_t)$: Standard deviation of daily returns.
$A$: Annualization factor (days/year).
$r_f$: Annual risk-free rate.

Lumentum Holdings vs Coherent Corp.: Frequently Asked Questions

Which has higher volatility: LITE or COHR?

LITE showed higher volatility at 79.7% annualized, compared to 68.5% for COHR Over the past year. Higher volatility means larger price swings in both directions.

Does LITE provide diversification when held with COHR?

LITE and COHR are strongly correlated over the past year, with an average correlation of 0.69. This strong correlation limits diversification benefits.

How bad are the worst 5% days for LITE vs COHR?

Over the past year, LITE's 5% VaR was -7.07% and its 5% Expected Shortfall was -10.68% (worst 13 days). COHR's were -6.25% and -10.01% (worst 13 days).

Do LITE and COHR crash together on bad days?

On shared dates (n=248), when COHR has a 2σ down day, LITE also does 50.0% (5/10 days). In the other direction, when LITE has one, COHR also does 62.5% (5/8 days).

Which has better risk-adjusted returns: LITE or COHR?

LITE showed better risk-adjusted performance with a Sharpe ratio of 3.98 versus COHR's 2.81 Over the past year.

Can LITE and COHR be combined in a portfolio?

Yes, though allocation sizing matters. Their strong correlation provides limited risk reduction since they tend to move together. LITE's higher volatility (79.7%) means even small allocations can materially impact overall portfolio risk.

Explore our financial glossary