Correlation Between Shinhan Financial and Wolverine World
Can any of the company-specific risk be diversified away by investing in both Shinhan Financial 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 Shinhan Financial and Wolverine World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan Financial Group and Wolverine World Wide, you can compare the effects of market volatilities on Shinhan Financial 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 Shinhan Financial with a short position of Wolverine World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan Financial and Wolverine World.
Diversification Opportunities for Shinhan Financial and Wolverine World
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shinhan and Wolverine is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan Financial Group 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 Shinhan Financial 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 Shinhan Financial Group 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 Shinhan Financial i.e., Shinhan Financial and Wolverine World go up and down completely randomly.
Pair Corralation between Shinhan Financial and Wolverine World
Considering the 90-day investment horizon Shinhan Financial Group is expected to generate 0.4 times more return on investment than Wolverine World. However, Shinhan Financial Group is 2.52 times less risky than Wolverine World. It trades about 0.18 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 4,656 in Shinhan Financial Group on September 5, 2025 and sell it today you would earn a total of 868.00 from holding Shinhan Financial Group or generate 18.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinhan Financial Group vs. Wolverine World Wide
Performance |
| Timeline |
| Shinhan Financial |
| Wolverine World Wide |
Shinhan Financial and Wolverine World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan Financial and Wolverine World
The main advantage of trading using opposite Shinhan Financial and Wolverine World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan Financial 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.| Shinhan Financial vs. Pembina Pipeline | Shinhan Financial vs. Brandywine Realty Trust | Shinhan Financial vs. Nascent Wine | Shinhan Financial vs. Sumitomo Chemical Co |
| Wolverine World vs. Xtera Communications | Wolverine World vs. Spirent Communications plc | Wolverine World vs. NexPoint Diversified Real | Wolverine World vs. ISPAF |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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