Correlation Between American Rebel and Levi Strauss
Can any of the company-specific risk be diversified away by investing in both American Rebel 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 American Rebel and Levi Strauss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Rebel Holdings and Levi Strauss Co, you can compare the effects of market volatilities on American Rebel 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 American Rebel with a short position of Levi Strauss. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Rebel and Levi Strauss.
Diversification Opportunities for American Rebel and Levi Strauss
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and Levi is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding American Rebel Holdings and Levi Strauss Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Levi Strauss and American Rebel 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 American Rebel Holdings 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 American Rebel i.e., American Rebel and Levi Strauss go up and down completely randomly.
Pair Corralation between American Rebel and Levi Strauss
Given the investment horizon of 90 days American Rebel Holdings is expected to generate 18.65 times more return on investment than Levi Strauss. However, American Rebel is 18.65 times more volatile than Levi Strauss Co. It trades about 0.19 of its potential returns per unit of risk. Levi Strauss Co is currently generating about -0.05 per unit of risk. If you would invest 760.00 in American Rebel Holdings on January 10, 2025 and sell it today you would lose (35.00) from holding American Rebel Holdings or give up 4.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Rebel Holdings vs. Levi Strauss Co
Performance |
| Timeline |
| American Rebel Holdings |
| Levi Strauss |
American Rebel and Levi Strauss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Rebel and Levi Strauss
The main advantage of trading using opposite American Rebel and Levi Strauss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Rebel 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.| American Rebel vs. Renewable Energy and | American Rebel vs. Crocs Inc | American Rebel vs. Deckers Outdoor | American Rebel vs. Nike Inc |
| Levi Strauss vs. LYFT Inc | Levi Strauss vs. Tapestry | Levi Strauss vs. Capri Holdings | Levi Strauss vs. YETI Holdings |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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