Correlation Analysis Between Kellogg and Lamb Weston

Analyzing existing cross correlation between Kellogg Company and Lamb Weston Holdings. You can compare the effects of market volatilities on Kellogg 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 Kellogg with a short position of Lamb Weston. See also your portfolio center. Please also check ongoing floating volatility patterns of Kellogg and Lamb Weston.
Horizon     30 Days    Login   to change
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Comparative Performance

Kellogg Company  
1616

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kellogg Company are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days. Regardless of fairly unsteady technical and fundamental indicators, Kellogg demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Lamb Weston Holdings  
1212

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Lamb Weston Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days. Inspite fairly unsteady primary indicators, Lamb Weston showed solid returns over the last few months and may actually be approaching a breakup point.

Kellogg and Lamb Weston Volatility Contrast

 Predicted Return Density 
    
  Returns 

Kellogg Company  vs.  Lamb Weston Holdings Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Kellogg is expected to generate 1.43 times less return on investment than Lamb Weston. But when comparing it to its historical volatility, Kellogg Company is 1.97 times less risky than Lamb Weston. It trades about 0.25 of its potential returns per unit of risk. Lamb Weston Holdings is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  7,603  in Lamb Weston Holdings on December 26, 2019 and sell it today you would earn a total of  1,466  from holding Lamb Weston Holdings or generate 19.28% return on investment over 30 days.

Pair Corralation between Kellogg and Lamb Weston

0.93
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Kellogg and Lamb Weston

Kellogg Company diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Kellogg Company and Lamb Weston Holdings Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Lamb Weston Holdings and Kellogg 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 Kellogg Company 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 Kellogg i.e. Kellogg and Lamb Weston go up and down completely randomly.
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