AAOI vs. LITE
AAOI (Applied Optoelectronics, Inc.) and LITE (Lumentum Holdings Inc.) are both stocks. Both operate in the Communication Equipment industry within the Technology sector. Over the past 10 years, AAOI returned 23.27%/yr vs 37.52%/yr for LITE. Their 0.46 correlation means their historical movements had little consistent relationship.
Performance
AAOI vs. LITE - Performance Comparison
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Returns By Period
In the year-to-date period, AAOI achieves a 170.57% return, which is significantly higher than LITE's 93.69% return. Over the past 10 years, AAOI has underperformed LITE with an annualized return of 23.27%, while LITE has yielded a comparatively higher 37.52% annualized return.
AAOI
- 1D
- 4.67%
- 1M
- -22.02%
- 6M
- 116.28%
- YTD
- 170.57%
- 1Y
- 338.09%
- 3Y*
- 137.62%
- 5Y*
- 64.92%
- 10Y*
- 23.27%
- ALL TIME*
- 19.09%
LITE
- 1D
- 2.99%
- 1M
- -1.97%
- 6M
- 82.20%
- YTD
- 93.69%
- 1Y
- 569.24%
- 3Y*
- 140.32%
- 5Y*
- 53.42%
- 10Y*
- 37.52%
- ALL TIME*
- 36.04%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $850.42M | $964.89M | $1.83B | |
| $3.39B | $3.22B | $4.79B |
AAOI vs. LITE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AAOI Applied Optoelectronics, Inc. | 170.57% | -5.43% | 90.79% | 922.22% | -63.23% | -39.60% | -28.37% | -23.01% | -59.20% | 61.35% |
LITE Lumentum Holdings Inc. | 93.69% | 339.06% | 60.15% | 0.48% | -50.68% | 11.57% | 19.55% | 88.76% | -14.09% | 26.52% |
Correlation
The correlation between AAOI and LITE is 0.67, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.67 |
Correlation (3Y) Balances recent behavior with more history. | 0.56 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.50 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.47 |
Correlation (All Time) Calculated using the full available price history since Aug 4, 2015 | 0.46 |
Over the past year, AAOI and LITE have become more correlated (0.67) than their long-term average of 0.46, meaning their price movements have been converging.
Fundamentals
AAOI:
$7.57B
LITE:
$55.54B
AAOI:
-$0.62
LITE:
$5.03
AAOI:
13.00
LITE:
25.09
AAOI:
6.48
LITE:
23.10
AAOI:
$507.00M
LITE:
$2.49B
AAOI:
$150.29M
LITE:
$938.50M
AAOI:
-$26.44M
LITE:
$470.10M
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Return for Risk
AAOI vs. LITE — Risk / Return Rank
AAOI
LITE
AAOI vs. LITE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Applied Optoelectronics, Inc. (AAOI) and Lumentum Holdings Inc. (LITE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| AAOI | LITE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -3.76 | ||
| Sortino ratioReturn per unit of downside risk | -1.12 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.50 | -0.16 |
| Calmar ratioReturn relative to maximum drawdown | 4.79 | 12.93 | -8.14 |
| Martin ratioReturn relative to average drawdown | 13.86 | 44.86 | -31.01 |
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Drawdowns
AAOI vs. LITE - Drawdown Comparison
The maximum AAOI drawdown since its inception was -98.49%, which is greater than LITE's maximum drawdown of -66.89%. Use the drawdown chart below to compare losses from any high point for AAOI and LITE.
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Drawdown Indicators
| AAOI | LITE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -98.49% | -66.89% | -31.60% |
Max Drawdown (1Y)Largest decline over 1 year | -65.70% | -42.80% | -22.90% |
Max Drawdown (3Y)Largest decline over 3 years | -77.17% | -50.63% | -26.54% |
Max Drawdown (5Y)Largest decline over 5 years | -82.64% | -66.48% | -16.16% |
Max Drawdown (10Y)Largest decline over 10 years | -98.49% | -66.89% | -31.60% |
Current DrawdownCurrent decline from peak | -57.72% | -32.21% | -25.51% |
Average DrawdownAverage peak-to-trough decline | -65.45% | -23.59% | -41.86% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 22.67% | 12.31% | +10.36% |
Volatility
AAOI vs. LITE - Volatility Comparison
Applied Optoelectronics, Inc. (AAOI) has a higher volatility of 42.02% compared to Lumentum Holdings Inc. (LITE) at 31.86%. This indicates that AAOI's price experiences larger fluctuations and is considered to be riskier than LITE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AAOI | LITE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 42.02% | 31.86% | +10.16% |
Volatility (6M)Calculated over the trailing 6-month period | 111.21% | 70.58% | +40.63% |
Volatility (1Y)Calculated over the trailing 1-year period | 143.64% | 93.02% | +50.62% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 121.27% | 61.98% | +59.29% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 99.35% | 57.45% | +41.90% |
Dividends
AAOI vs. LITE - Dividend Comparison
Neither AAOI nor LITE has paid dividends to shareholders.
Financials
AAOI vs. LITE - Financials Comparison
This section allows you to compare key financial metrics between Applied Optoelectronics, Inc. and Lumentum Holdings Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
AAOI vs. LITE - Profitability Comparison
AAOI - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, Applied Optoelectronics, Inc. reported a gross profit of 43.92M and revenue of 151.14M. Therefore, the gross margin over that period was 29.1%.
LITE - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, Lumentum Holdings Inc. reported a gross profit of 357.00M and revenue of 808.40M. Therefore, the gross margin over that period was 44.2%.
AAOI - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, Applied Optoelectronics, Inc. reported an operating income of -12.99M and revenue of 151.14M, resulting in an operating margin of -8.6%.
LITE - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, Lumentum Holdings Inc. reported an operating income of 174.50M and revenue of 808.40M, resulting in an operating margin of 21.6%.
AAOI - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, Applied Optoelectronics, Inc. reported a net income of -14.28M and revenue of 151.14M, resulting in a net margin of -9.5%.
LITE - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, Lumentum Holdings Inc. reported a net income of 144.20M and revenue of 808.40M, resulting in a net margin of 17.8%.
Frequently Asked Questions
AAOI and LITE have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AAOI has higher volatility (42.02%) compared to LITE (31.86%). In terms of maximum drawdown, AAOI dropped -98.49% vs LITE's -66.89%.
LITE currently has the higher Sharpe Ratio (5.95 vs 2.19), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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