Correlation Between NCR Corp and Levi Strauss
Can any of the company-specific risk be diversified away by investing in both NCR Corp 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 NCR Corp and Levi Strauss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NCR Corp Pref and Levi Strauss Co, you can compare the effects of market volatilities on NCR Corp 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 NCR Corp with a short position of Levi Strauss. Check out your portfolio center. Please also check ongoing floating volatility patterns of NCR Corp and Levi Strauss.
Diversification Opportunities for NCR Corp and Levi Strauss
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NCR and Levi is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding NCR Corp Pref and Levi Strauss Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Levi Strauss and NCR Corp 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 NCR Corp Pref 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 NCR Corp i.e., NCR Corp and Levi Strauss go up and down completely randomly.
Pair Corralation between NCR Corp and Levi Strauss
If you would invest 1,632 in Levi Strauss Co on October 23, 2024 and sell it today you would earn a total of 105.00 from holding Levi Strauss Co or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.63% |
| Values | Daily Returns |
NCR Corp Pref vs. Levi Strauss Co
Performance |
| Timeline |
| NCR Corp Pref |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Levi Strauss |
NCR Corp and Levi Strauss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NCR Corp and Levi Strauss
The main advantage of trading using opposite NCR Corp and Levi Strauss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NCR Corp 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.| NCR Corp vs. Levi Strauss Co | NCR Corp vs. Victorias Secret Co | NCR Corp vs. Cardinal Health | NCR Corp vs. Tandy Leather Factory |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |