Correlation Between Assurant and Levi Strauss
Can any of the company-specific risk be diversified away by investing in both Assurant and Levi Strauss 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 Assurant and Levi Strauss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assurant and Levi Strauss Co, you can compare the effects of market volatilities on Assurant and Levi Strauss 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 Assurant with a short position of Levi Strauss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and Levi Strauss.
Diversification Opportunities for Assurant and Levi Strauss
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Assurant and Levi is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and Levi Strauss Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Levi Strauss and Assurant 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 Assurant are associated (or correlated) with Levi Strauss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Levi Strauss has no effect on the direction of Assurant i.e., Assurant and Levi Strauss go up and down completely randomly.
Pair Corralation between Assurant and Levi Strauss
Considering the 90-day investment horizon Assurant is expected to generate 0.66 times more return on investment than Levi Strauss. However, Assurant is 1.52 times less risky than Levi Strauss. It trades about 0.09 of its potential returns per unit of risk. Levi Strauss Co is currently generating about 0.02 per unit of risk. If you would invest 12,161 in Assurant on September 4, 2024 and sell it today you would earn a total of 10,412 from holding Assurant or generate 85.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assurant vs. Levi Strauss Co
Performance |
| Timeline |
| Assurant |
| Levi Strauss |
Assurant and Levi Strauss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and Levi Strauss
The main advantage of trading using opposite Assurant and Levi Strauss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant position performs unexpectedly, Levi Strauss 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 Levi Strauss will offset losses from the drop in Levi Strauss' long position.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
| Levi Strauss vs. On Holding | Levi Strauss vs. Steven Madden | Levi Strauss vs. Crocs Inc | Levi Strauss vs. Designer Brands |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |