Correlation Between Kontoor Brands and Levi Strauss
Can any of the company-specific risk be diversified away by investing in both Kontoor Brands 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 Kontoor Brands and Levi Strauss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kontoor Brands and Levi Strauss Co, you can compare the effects of market volatilities on Kontoor Brands 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 Kontoor Brands with a short position of Levi Strauss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontoor Brands and Levi Strauss.
Diversification Opportunities for Kontoor Brands and Levi Strauss
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kontoor and Levi is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kontoor Brands and Levi Strauss Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Levi Strauss and Kontoor Brands 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 Kontoor Brands 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 Kontoor Brands i.e., Kontoor Brands and Levi Strauss go up and down completely randomly.
Pair Corralation between Kontoor Brands and Levi Strauss
Considering the 90-day investment horizon Kontoor Brands is expected to generate 2.95 times more return on investment than Levi Strauss. However, Kontoor Brands is 2.95 times more volatile than Levi Strauss Co. It trades about 0.26 of its potential returns per unit of risk. Levi Strauss Co is currently generating about -0.31 per unit of risk. If you would invest 7,757 in Kontoor Brands on August 27, 2024 and sell it today you would earn a total of 1,381 from holding Kontoor Brands or generate 17.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kontoor Brands vs. Levi Strauss Co
Performance |
| Timeline |
| Kontoor Brands |
| Levi Strauss |
Kontoor Brands and Levi Strauss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kontoor Brands and Levi Strauss
The main advantage of trading using opposite Kontoor Brands and Levi Strauss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kontoor Brands 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.| Kontoor Brands vs. Vince Holding Corp | Kontoor Brands vs. Ermenegildo Zegna NV | Kontoor Brands vs. Columbia Sportswear | Kontoor Brands vs. Gildan Activewear |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |