Correlation Between Evergy, and Lamb Weston
Can any of the company-specific risk be diversified away by investing in both Evergy, and Lamb Weston 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 Evergy, and Lamb Weston into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evergy, and Lamb Weston Holdings, you can compare the effects of market volatilities on Evergy, and Lamb Weston 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 Evergy, with a short position of Lamb Weston. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergy, and Lamb Weston.
Diversification Opportunities for Evergy, and Lamb Weston
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Evergy, and Lamb is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Evergy, and Lamb Weston Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lamb Weston Holdings and Evergy, 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 Evergy, are associated (or correlated) with Lamb Weston. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lamb Weston Holdings has no effect on the direction of Evergy, i.e., Evergy, and Lamb Weston go up and down completely randomly.
Pair Corralation between Evergy, and Lamb Weston
Given the investment horizon of 90 days Evergy, is expected to generate 0.6 times more return on investment than Lamb Weston. However, Evergy, is 1.67 times less risky than Lamb Weston. It trades about 0.19 of its potential returns per unit of risk. Lamb Weston Holdings is currently generating about 0.01 per unit of risk. If you would invest 6,196 in Evergy, on August 24, 2024 and sell it today you would earn a total of 260.00 from holding Evergy, or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evergy, vs. Lamb Weston Holdings
Performance |
| Timeline |
| Evergy, |
| Lamb Weston Holdings |
Evergy, and Lamb Weston Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergy, and Lamb Weston
The main advantage of trading using opposite Evergy, and Lamb Weston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergy, position performs unexpectedly, Lamb Weston 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 Lamb Weston will offset losses from the drop in Lamb Weston's long position.| Evergy, vs. CMS Energy | Evergy, vs. Ameren Corp | Evergy, vs. Pinnacle West Capital | Evergy, vs. MGE Energy |
| Lamb Weston vs. Allegion PLC | Lamb Weston vs. Evergy, | Lamb Weston vs. Fortive Corp | Lamb Weston vs. IQVIA Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| CEOs Directory Screen CEOs from public companies around the world |