Correlation Between ISPAF and Wolverine World
Can any of the company-specific risk be diversified away by investing in both ISPAF and Wolverine World 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 ISPAF and Wolverine World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ISPAF and Wolverine World Wide, you can compare the effects of market volatilities on ISPAF and Wolverine World 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 ISPAF with a short position of Wolverine World. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISPAF and Wolverine World.
Diversification Opportunities for ISPAF and Wolverine World
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ISPAF and Wolverine is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding ISPAF and Wolverine World Wide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wolverine World Wide and ISPAF 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 ISPAF are associated (or correlated) with Wolverine World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wolverine World Wide has no effect on the direction of ISPAF i.e., ISPAF and Wolverine World go up and down completely randomly.
Pair Corralation between ISPAF and Wolverine World
Assuming the 90 days horizon ISPAF is expected to generate 0.05 times more return on investment than Wolverine World. However, ISPAF is 21.68 times less risky than Wolverine World. It trades about 0.12 of its potential returns per unit of risk. Wolverine World Wide is currently generating about -0.21 per unit of risk. If you would invest 11,187 in ISPAF on September 7, 2025 and sell it today you would earn a total of 161.00 from holding ISPAF or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ISPAF vs. Wolverine World Wide
Performance |
| Timeline |
| ISPAF |
| Wolverine World Wide |
ISPAF and Wolverine World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISPAF and Wolverine World
The main advantage of trading using opposite ISPAF and Wolverine World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISPAF position performs unexpectedly, Wolverine World 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 Wolverine World will offset losses from the drop in Wolverine World's long position.The idea behind ISPAF and Wolverine World Wide 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.| Wolverine World vs. Spirent Communications plc | Wolverine World vs. LATAM Airlines Group | Wolverine World vs. DATA Communications Management | Wolverine World vs. World of Wireless |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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