Correlation Between Levi Strauss and Canada Goose
Can any of the company-specific risk be diversified away by investing in both Levi Strauss and Canada Goose 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 Canada Goose 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 Canada Goose Holdings, you can compare the effects of market volatilities on Levi Strauss and Canada Goose 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 Canada Goose. Check out your portfolio center. Please also check ongoing floating volatility patterns of Levi Strauss and Canada Goose.
Diversification Opportunities for Levi Strauss and Canada Goose
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Levi and Canada is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Levi Strauss Co and Canada Goose Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canada Goose Holdings 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 Canada Goose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canada Goose Holdings has no effect on the direction of Levi Strauss i.e., Levi Strauss and Canada Goose go up and down completely randomly.
Pair Corralation between Levi Strauss and Canada Goose
Given the investment horizon of 90 days Levi Strauss is expected to generate 1.02 times less return on investment than Canada Goose. But when comparing it to its historical volatility, Levi Strauss Co is 1.46 times less risky than Canada Goose. It trades about 0.0 of its potential returns per unit of risk. Canada Goose Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,163 in Canada Goose Holdings on November 2, 2024 and sell it today you would lose (34.00) from holding Canada Goose Holdings or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Levi Strauss Co vs. Canada Goose Holdings
Performance |
| Timeline |
| Levi Strauss |
| Canada Goose Holdings |
Levi Strauss and Canada Goose Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Levi Strauss and Canada Goose
The main advantage of trading using opposite Levi Strauss and Canada Goose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levi Strauss position performs unexpectedly, Canada Goose 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 Canada Goose will offset losses from the drop in Canada Goose's long position.| Levi Strauss vs. LYFT Inc | Levi Strauss vs. Tapestry | Levi Strauss vs. Capri Holdings | Levi Strauss vs. YETI Holdings |
| Canada Goose vs. PVH Corp | Canada Goose vs. VF Corporation | Canada Goose vs. Levi Strauss Co | Canada Goose 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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