Correlation Between CXApp and Levi Strauss
Can any of the company-specific risk be diversified away by investing in both CXApp 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 CXApp and Levi Strauss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CXApp Inc and Levi Strauss Co, you can compare the effects of market volatilities on CXApp 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 CXApp with a short position of Levi Strauss. Check out your portfolio center. Please also check ongoing floating volatility patterns of CXApp and Levi Strauss.
Diversification Opportunities for CXApp and Levi Strauss
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CXApp and Levi is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and Levi Strauss Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Levi Strauss and CXApp 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 CXApp Inc 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 CXApp i.e., CXApp and Levi Strauss go up and down completely randomly.
Pair Corralation between CXApp and Levi Strauss
Assuming the 90 days horizon CXApp Inc is expected to generate 2.58 times more return on investment than Levi Strauss. However, CXApp is 2.58 times more volatile than Levi Strauss Co. It trades about 0.01 of its potential returns per unit of risk. Levi Strauss Co is currently generating about -0.07 per unit of risk. If you would invest 22.00 in CXApp Inc on September 5, 2024 and sell it today you would lose (3.00) from holding CXApp Inc or give up 13.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CXApp Inc vs. Levi Strauss Co
Performance |
| Timeline |
| CXApp Inc |
| Levi Strauss |
CXApp and Levi Strauss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CXApp and Levi Strauss
The main advantage of trading using opposite CXApp and Levi Strauss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CXApp 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.The idea behind CXApp Inc and Levi Strauss Co 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.| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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