Correlation Between Levi Strauss and Hugo Boss
Can any of the company-specific risk be diversified away by investing in both Levi Strauss and Hugo Boss 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 Levi Strauss and Hugo Boss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Levi Strauss Co and Hugo Boss AG, you can compare the effects of market volatilities on Levi Strauss and Hugo Boss 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 Levi Strauss with a short position of Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Levi Strauss and Hugo Boss.
Diversification Opportunities for Levi Strauss and Hugo Boss
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Levi and Hugo is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Levi Strauss Co and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG and Levi Strauss 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 Levi Strauss Co are associated (or correlated) with Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Levi Strauss i.e., Levi Strauss and Hugo Boss go up and down completely randomly.
Pair Corralation between Levi Strauss and Hugo Boss
Given the investment horizon of 90 days Levi Strauss Co is expected to generate 0.48 times more return on investment than Hugo Boss. However, Levi Strauss Co is 2.08 times less risky than Hugo Boss. It trades about 0.08 of its potential returns per unit of risk. Hugo Boss AG is currently generating about 0.02 per unit of risk. If you would invest 1,698 in Levi Strauss Co on September 14, 2024 and sell it today you would earn a total of 50.00 from holding Levi Strauss Co or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Levi Strauss Co vs. Hugo Boss AG
Performance |
| Timeline |
| Levi Strauss |
| Hugo Boss AG |
Levi Strauss and Hugo Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Levi Strauss and Hugo Boss
The main advantage of trading using opposite Levi Strauss and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levi Strauss position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.| Levi Strauss vs. LYFT Inc | Levi Strauss vs. Tapestry | Levi Strauss vs. Capri Holdings | Levi Strauss vs. YETI Holdings |
| Hugo Boss vs. VF Corporation | Hugo Boss vs. Levi Strauss Co | Hugo Boss vs. Under Armour C | Hugo Boss vs. Under Armour A |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |