Correlation Between Levi Strauss and JX Luxventure

Can any of the company-specific risk be diversified away by investing in both Levi Strauss and JX Luxventure 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 JX Luxventure 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 JX Luxventure, you can compare the effects of market volatilities on Levi Strauss and JX Luxventure 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 JX Luxventure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Levi Strauss and JX Luxventure.

Diversification Opportunities for Levi Strauss and JX Luxventure

-0.72

Correlation Coefficient

Levi Strauss  JX Luxventure

Pay attention - limited upside

The 3 months correlation between Levi and LLL is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Levi Strauss Co and JX Luxventure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JX Luxventure 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 JX Luxventure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JX Luxventure has no effect on the direction of Levi Strauss i.e., Levi Strauss and JX Luxventure go up and down completely randomly.

Pair Corralation between Levi Strauss and JX Luxventure

If you would invest  1,864  in Levi Strauss Co on January 24, 2024 and sell it today you would earn a total of  266.00  from holding Levi Strauss Co or generate 14.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	5.0%
Values	Daily Returns

Levi Strauss Co  vs.  JX Luxventure

Levi Strauss

Risk-Adjusted Performance

16 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Levi Strauss Co are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Levi Strauss demonstrated solid returns over the last few months and may actually be approaching a breakup point.

JX Luxventure

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JX Luxventure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, JX Luxventure is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Levi Strauss and JX Luxventure

The main advantage of trading using opposite Levi Strauss and JX Luxventure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levi Strauss position performs unexpectedly, JX Luxventure 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 JX Luxventure will offset losses from the drop in JX Luxventure's long position.

The idea behind Levi Strauss Co and JX Luxventure pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.