Correlation Between LAMB and KEY

Can any of the company-specific risk be diversified away by investing in both LAMB and KEY 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 and KEY into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LAMB and KEY, you can compare the effects of market volatilities on LAMB and KEY 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 with a short position of KEY. Check out your portfolio center. Please also check ongoing floating volatility patterns of LAMB and KEY.

Diversification Opportunities for LAMB and KEY

0.0

Correlation Coefficient

LAMB  KEY

Pay attention - limited upside

The 3 months correlation between LAMB and KEY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LAMB and KEY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEY and LAMB 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 are associated (or correlated) with KEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEY has no effect on the direction of LAMB i.e., LAMB and KEY go up and down completely randomly.

Pair Corralation between LAMB and KEY

If you would invest  0.14  in LAMB on June 30, 2025 and sell it today you would earn a total of  0.00  from holding LAMB or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

LAMB  vs.  KEY

LAMB

Risk-Adjusted Performance

Weakest

Over the last 90 days LAMB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, LAMB is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

KEY

Risk-Adjusted Performance

Weakest

Over the last 90 days KEY has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, KEY is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with LAMB and KEY

The main advantage of trading using opposite LAMB and KEY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAMB position performs unexpectedly, KEY 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 KEY will offset losses from the drop in KEY's long position.

The idea behind LAMB and KEY pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.