Correlation Between Levi Strauss and SOUTHERN
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By analyzing existing cross correlation between Levi Strauss Co and SOUTHERN CALIFORNIA EDISON, you can compare the effects of market volatilities on Levi Strauss and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Levi Strauss and SOUTHERN.
Diversification Opportunities for Levi Strauss and SOUTHERN
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Levi and SOUTHERN is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Levi Strauss Co and SOUTHERN CALIFORNIA EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIFORNIA 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIFORNIA has no effect on the direction of Levi Strauss i.e., Levi Strauss and SOUTHERN go up and down completely randomly.
Pair Corralation between Levi Strauss and SOUTHERN
Given the investment horizon of 90 days Levi Strauss Co is expected to generate 2.34 times more return on investment than SOUTHERN. However, Levi Strauss is 2.34 times more volatile than SOUTHERN CALIFORNIA EDISON. It trades about 0.21 of its potential returns per unit of risk. SOUTHERN CALIFORNIA EDISON is currently generating about 0.13 per unit of risk. If you would invest 1,700 in Levi Strauss Co on September 5, 2024 and sell it today you would earn a total of 149.00 from holding Levi Strauss Co or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 90.91% |
| Values | Daily Returns |
Levi Strauss Co vs. SOUTHERN CALIFORNIA EDISON
Performance |
| Timeline |
| Levi Strauss |
| SOUTHERN CALIFORNIA |
Levi Strauss and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Levi Strauss and SOUTHERN
The main advantage of trading using opposite Levi Strauss and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levi Strauss position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Levi Strauss vs. LYFT Inc | Levi Strauss vs. Tapestry | Levi Strauss vs. Capri Holdings | Levi Strauss vs. YETI Holdings |
| SOUTHERN vs. High Performance Beverages | SOUTHERN vs. Levi Strauss Co | SOUTHERN vs. Oatly Group AB | SOUTHERN vs. National Beverage Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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