Correlation Between SOUTHERN and Levi Strauss
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By analyzing existing cross correlation between SOUTHERN CALIFORNIA EDISON and Levi Strauss Co, you can compare the effects of market volatilities on SOUTHERN 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 SOUTHERN with a short position of Levi Strauss. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Levi Strauss.
Diversification Opportunities for SOUTHERN and Levi Strauss
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SOUTHERN and Levi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIFORNIA EDISON and Levi Strauss Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Levi Strauss and SOUTHERN 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 SOUTHERN CALIFORNIA EDISON 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 SOUTHERN i.e., SOUTHERN and Levi Strauss go up and down completely randomly.
Pair Corralation between SOUTHERN and Levi Strauss
Assuming the 90 days trading horizon SOUTHERN is expected to generate 3.91 times less return on investment than Levi Strauss. But when comparing it to its historical volatility, SOUTHERN CALIFORNIA EDISON is 2.34 times less risky than Levi Strauss. It trades about 0.13 of its potential returns per unit of risk. Levi Strauss Co is currently generating about 0.21 of returns per unit of risk over similar time horizon. 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 |
SOUTHERN CALIFORNIA EDISON vs. Levi Strauss Co
Performance |
| Timeline |
| SOUTHERN CALIFORNIA |
| Levi Strauss |
SOUTHERN and Levi Strauss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Levi Strauss
The main advantage of trading using opposite SOUTHERN and Levi Strauss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN 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.| SOUTHERN vs. High Performance Beverages | SOUTHERN vs. Levi Strauss Co | SOUTHERN vs. Oatly Group AB | SOUTHERN vs. National Beverage Corp |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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