Correlation Between Stryve Foods and Lamb Weston
Can any of the company-specific risk be diversified away by investing in both Stryve Foods 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 Stryve Foods and Lamb Weston into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stryve Foods and Lamb Weston Holdings, you can compare the effects of market volatilities on Stryve Foods 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 Stryve Foods with a short position of Lamb Weston. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stryve Foods and Lamb Weston.
Diversification Opportunities for Stryve Foods and Lamb Weston
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stryve and Lamb is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Stryve Foods 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 Stryve Foods 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 Stryve Foods 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 Stryve Foods i.e., Stryve Foods and Lamb Weston go up and down completely randomly.
Pair Corralation between Stryve Foods and Lamb Weston
Given the investment horizon of 90 days Stryve Foods is expected to generate 2.7 times more return on investment than Lamb Weston. However, Stryve Foods is 2.7 times more volatile than Lamb Weston Holdings. It trades about 0.05 of its potential returns per unit of risk. Lamb Weston Holdings is currently generating about -0.17 per unit of risk. If you would invest 65.00 in Stryve Foods on December 18, 2024 and sell it today you would earn a total of 1.00 from holding Stryve Foods or generate 1.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 60.0% |
Values | Daily Returns |
Stryve Foods vs. Lamb Weston Holdings
Performance |
Timeline |
Stryve Foods |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
Lamb Weston Holdings |
Stryve Foods and Lamb Weston Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stryve Foods and Lamb Weston
The main advantage of trading using opposite Stryve Foods and Lamb Weston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stryve Foods 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.Stryve Foods vs. Bit Origin | Stryve Foods vs. Laird Superfood | Stryve Foods vs. Planet Green Holdings | Stryve Foods vs. Better Choice |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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