Correlation Between Pilgrims Pride and Lamb Weston
Can any of the company-specific risk be diversified away by investing in both Pilgrims Pride 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 Pilgrims Pride and Lamb Weston into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pilgrims Pride Corp and Lamb Weston Holdings, you can compare the effects of market volatilities on Pilgrims Pride 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 Pilgrims Pride with a short position of Lamb Weston. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pilgrims Pride and Lamb Weston.
Diversification Opportunities for Pilgrims Pride and Lamb Weston
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pilgrims and Lamb is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pilgrims Pride Corp 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 Pilgrims Pride 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 Pilgrims Pride Corp 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 Pilgrims Pride i.e., Pilgrims Pride and Lamb Weston go up and down completely randomly.
Pair Corralation between Pilgrims Pride and Lamb Weston
Considering the 90-day investment horizon Pilgrims Pride Corp is expected to under-perform the Lamb Weston. But the stock apears to be less risky and, when comparing its historical volatility, Pilgrims Pride Corp is 1.33 times less risky than Lamb Weston. The stock trades about -0.12 of its potential returns per unit of risk. The Lamb Weston Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,554 in Lamb Weston Holdings on September 10, 2025 and sell it today you would earn a total of 399.00 from holding Lamb Weston Holdings or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pilgrims Pride Corp vs. Lamb Weston Holdings
Performance |
| Timeline |
| Pilgrims Pride Corp |
| Lamb Weston Holdings |
Pilgrims Pride and Lamb Weston Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pilgrims Pride and Lamb Weston
The main advantage of trading using opposite Pilgrims Pride and Lamb Weston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pilgrims Pride 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.| Pilgrims Pride vs. Campbells Co | Pilgrims Pride vs. ConAgra Foods | Pilgrims Pride vs. Lamb Weston Holdings | Pilgrims Pride vs. Molson Coors Brewing |
| Lamb Weston vs. JBS NV | Lamb Weston vs. General Mills | Lamb Weston vs. Archer Daniels Midland | Lamb Weston vs. Kenvue Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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