Correlation Between Lamb Weston and Kellanova
Can any of the company-specific risk be diversified away by investing in both Lamb Weston and Kellanova 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 Lamb Weston and Kellanova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lamb Weston Holdings and Kellanova, you can compare the effects of market volatilities on Lamb Weston and Kellanova 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 Lamb Weston with a short position of Kellanova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lamb Weston and Kellanova.
Diversification Opportunities for Lamb Weston and Kellanova
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lamb and Kellanova is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lamb Weston Holdings and Kellanova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellanova and Lamb Weston 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 Lamb Weston Holdings are associated (or correlated) with Kellanova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellanova has no effect on the direction of Lamb Weston i.e., Lamb Weston and Kellanova go up and down completely randomly.
Pair Corralation between Lamb Weston and Kellanova
Allowing for the 90-day total investment horizon Lamb Weston Holdings is expected to under-perform the Kellanova. In addition to that, Lamb Weston is 4.46 times more volatile than Kellanova. It trades about -0.24 of its total potential returns per unit of risk. Kellanova is currently generating about 0.08 per unit of volatility. If you would invest 5,520 in Kellanova on January 19, 2024 and sell it today you would earn a total of 87.00 from holding Kellanova or generate 1.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lamb Weston Holdings vs. Kellanova
Performance |
Timeline |
Lamb Weston Holdings |
Kellanova |
Lamb Weston and Kellanova Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lamb Weston and Kellanova
The main advantage of trading using opposite Lamb Weston and Kellanova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lamb Weston position performs unexpectedly, Kellanova 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 Kellanova will offset losses from the drop in Kellanova's long position.Lamb Weston vs. Seneca Foods Corp | Lamb Weston vs. Central Garden Pet | Lamb Weston vs. Central Garden Pet | Lamb Weston vs. Lancaster Colony |
Kellanova vs. Seneca Foods Corp | Kellanova vs. Central Garden Pet | Kellanova vs. Central Garden Pet | Kellanova vs. Lancaster Colony |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |