Correlation Between Lamb Weston and JBS NV

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Can any of the company-specific risk be diversified away by investing in both Lamb Weston and JBS NV 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 Lamb Weston and JBS NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lamb Weston Holdings and JBS NV, you can compare the effects of market volatilities on Lamb Weston and JBS NV 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 Lamb Weston with a short position of JBS NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lamb Weston and JBS NV.

Diversification Opportunities for Lamb Weston and JBS NV

-0.75
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Lamb and JBS is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Lamb Weston Holdings and JBS NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBS NV and Lamb Weston 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 Lamb Weston Holdings are associated (or correlated) with JBS NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBS NV has no effect on the direction of Lamb Weston i.e., Lamb Weston and JBS NV go up and down completely randomly.

Pair Corralation between Lamb Weston and JBS NV

Allowing for the 90-day total investment horizon Lamb Weston Holdings is expected to generate 1.12 times more return on investment than JBS NV. However, Lamb Weston is 1.12 times more volatile than JBS NV. It trades about 0.05 of its potential returns per unit of risk. JBS NV is currently generating about -0.06 per unit of risk. If you would invest  5,678  in Lamb Weston Holdings on September 9, 2025 and sell it today you would earn a total of  292.00  from holding Lamb Weston Holdings or generate 5.14% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Lamb Weston Holdings  vs.  JBS NV

 Performance 
       Timeline  
Lamb Weston Holdings 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Lamb Weston Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Lamb Weston is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
JBS NV 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days JBS NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's fundamental drivers remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Lamb Weston and JBS NV Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Lamb Weston and JBS NV

The main advantage of trading using opposite Lamb Weston and JBS NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lamb Weston position performs unexpectedly, JBS NV 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 JBS NV will offset losses from the drop in JBS NV's long position.
The idea behind Lamb Weston Holdings and JBS NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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