Correlation Between Wolverine World and Samsonite International
Can any of the company-specific risk be diversified away by investing in both Wolverine World and Samsonite International 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 Wolverine World and Samsonite International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wolverine World Wide and Samsonite International SA, you can compare the effects of market volatilities on Wolverine World and Samsonite International 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 Wolverine World with a short position of Samsonite International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wolverine World and Samsonite International.
Diversification Opportunities for Wolverine World and Samsonite International
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Wolverine and Samsonite is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Wolverine World Wide and Samsonite International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsonite International and Wolverine World 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 Wolverine World Wide are associated (or correlated) with Samsonite International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsonite International has no effect on the direction of Wolverine World i.e., Wolverine World and Samsonite International go up and down completely randomly.
Pair Corralation between Wolverine World and Samsonite International
Considering the 90-day investment horizon Wolverine World Wide is expected to under-perform the Samsonite International. In addition to that, Wolverine World is 1.85 times more volatile than Samsonite International SA. It trades about -0.3 of its total potential returns per unit of risk. Samsonite International SA is currently generating about 0.18 per unit of volatility. If you would invest 1,370 in Samsonite International SA on November 18, 2024 and sell it today you would earn a total of 85.00 from holding Samsonite International SA or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wolverine World Wide vs. Samsonite International SA
Performance |
| Timeline |
| Wolverine World Wide |
| Samsonite International |
Wolverine World and Samsonite International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wolverine World and Samsonite International
The main advantage of trading using opposite Wolverine World and Samsonite International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wolverine World position performs unexpectedly, Samsonite International 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 Samsonite International will offset losses from the drop in Samsonite International's long position.| Wolverine World vs. Weyco Group | Wolverine World vs. Rocky Brands | Wolverine World vs. Vera Bradley | Wolverine World vs. Caleres |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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