Correlation Between Levi Strauss and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Levi Strauss and Superior Plus 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 Superior Plus 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 Superior Plus Corp, you can compare the effects of market volatilities on Levi Strauss and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Levi Strauss and Superior Plus.
Diversification Opportunities for Levi Strauss and Superior Plus
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Levi and Superior is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Levi Strauss Co and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Levi Strauss i.e., Levi Strauss and Superior Plus go up and down completely randomly.
Pair Corralation between Levi Strauss and Superior Plus
Assuming the 90 days trading horizon Levi Strauss Co is expected to generate 1.13 times more return on investment than Superior Plus. However, Levi Strauss is 1.13 times more volatile than Superior Plus Corp. It trades about 0.05 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.03 per unit of risk. If you would invest 1,251 in Levi Strauss Co on September 12, 2024 and sell it today you would earn a total of 401.00 from holding Levi Strauss Co or generate 32.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Levi Strauss Co vs. Superior Plus Corp
Performance |
| Timeline |
| Levi Strauss |
| Superior Plus Corp |
Levi Strauss and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Levi Strauss and Superior Plus
The main advantage of trading using opposite Levi Strauss and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levi Strauss position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Levi Strauss vs. Superior Plus Corp | Levi Strauss vs. SIVERS SEMICONDUCTORS AB | Levi Strauss vs. Norsk Hydro ASA | Levi Strauss vs. Reliance Steel Aluminum |
| Superior Plus vs. AIR PRODCHEMICALS | Superior Plus vs. Suntory Beverage Food | Superior Plus vs. Molson Coors Beverage | Superior Plus vs. Monster 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |