Correlation Between Utz Brands and Lamb Weston
Can any of the company-specific risk be diversified away by investing in both Utz Brands 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 Utz Brands and Lamb Weston into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Utz Brands and Lamb Weston Holdings, you can compare the effects of market volatilities on Utz Brands 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 Utz Brands with a short position of Lamb Weston. Check out your portfolio center. Please also check ongoing floating volatility patterns of Utz Brands and Lamb Weston.
Diversification Opportunities for Utz Brands and Lamb Weston
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Utz and Lamb is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Utz Brands 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 Utz Brands 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 Utz Brands 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 Utz Brands i.e., Utz Brands and Lamb Weston go up and down completely randomly.
Pair Corralation between Utz Brands and Lamb Weston
Considering the 90-day investment horizon Utz Brands is expected to generate 24.25 times less return on investment than Lamb Weston. In addition to that, Utz Brands is 1.36 times more volatile than Lamb Weston Holdings. It trades about 0.0 of its total potential returns per unit of risk. Lamb Weston Holdings is currently generating about 0.08 per unit of volatility. If you would invest 7,746 in Lamb Weston Holdings on September 4, 2024 and sell it today you would earn a total of 195.00 from holding Lamb Weston Holdings or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Utz Brands vs. Lamb Weston Holdings
Performance |
| Timeline |
| Utz Brands |
| Lamb Weston Holdings |
Utz Brands and Lamb Weston Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Utz Brands and Lamb Weston
The main advantage of trading using opposite Utz Brands and Lamb Weston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Utz Brands 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.| Utz Brands vs. Campbell Soup | Utz Brands vs. ConAgra Foods | Utz Brands vs. Hormel Foods | Utz Brands vs. Kellanova |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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