Correlation Between Post Holdings and Lamb Weston
Can any of the company-specific risk be diversified away by investing in both Post Holdings 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 Post Holdings and Lamb Weston into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Post Holdings and Lamb Weston Holdings, you can compare the effects of market volatilities on Post Holdings 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 Post Holdings with a short position of Lamb Weston. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post Holdings and Lamb Weston.
Diversification Opportunities for Post Holdings and Lamb Weston
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Post and Lamb is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Post Holdings 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 Post Holdings 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 Post Holdings 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 Post Holdings i.e., Post Holdings and Lamb Weston go up and down completely randomly.
Pair Corralation between Post Holdings and Lamb Weston
Given the investment horizon of 90 days Post Holdings is expected to generate 0.78 times more return on investment than Lamb Weston. However, Post Holdings is 1.29 times less risky than Lamb Weston. It trades about 0.15 of its potential returns per unit of risk. Lamb Weston Holdings is currently generating about 0.02 per unit of risk. If you would invest 11,121 in Post Holdings on August 26, 2024 and sell it today you would earn a total of 459.00 from holding Post Holdings or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Post Holdings vs. Lamb Weston Holdings
Performance |
| Timeline |
| Post Holdings |
| Lamb Weston Holdings |
Post Holdings and Lamb Weston Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Post Holdings and Lamb Weston
The main advantage of trading using opposite Post Holdings and Lamb Weston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Post Holdings 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.| Post Holdings vs. Simply Good Foods | Post Holdings vs. Treehouse Foods | Post Holdings vs. J J Snack | Post Holdings vs. Central Garden Pet |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |