Correlation Between Wolverine World and Phoenix Footwear

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

Diversification Opportunities for Wolverine World and Phoenix Footwear

0.0

Correlation Coefficient

Wolverine World  Phoenix Footwear

Pay attention - limited upside

The 3 months correlation between Wolverine and Phoenix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wolverine World Wide and Phoenix Footwear Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Footwear 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 Phoenix Footwear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Footwear has no effect on the direction of Wolverine World i.e., Wolverine World and Phoenix Footwear go up and down completely randomly.

Pair Corralation between Wolverine World and Phoenix Footwear

If you would invest (100.00) in Phoenix Footwear Group on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Phoenix Footwear Group or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Wolverine World Wide  vs.  Phoenix Footwear Group

Wolverine World Wide

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wolverine World Wide has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Phoenix Footwear

Risk-Adjusted Performance

Very Weak

Over the last 90 days Phoenix Footwear Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Phoenix Footwear is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Wolverine World and Phoenix Footwear

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

The idea behind Wolverine World Wide and Phoenix Footwear Group 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.