Correlation Between WisdomTree International and Opus Small
Can any of the company-specific risk be diversified away by investing in both WisdomTree International and Opus Small 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 WisdomTree International and Opus Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree International Equity and Opus Small Cap, you can compare the effects of market volatilities on WisdomTree International and Opus Small 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 WisdomTree International with a short position of Opus Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree International and Opus Small.
Diversification Opportunities for WisdomTree International and Opus Small
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WisdomTree and Opus is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International Equit and Opus Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opus Small Cap and WisdomTree International 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 WisdomTree International Equity are associated (or correlated) with Opus Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opus Small Cap has no effect on the direction of WisdomTree International i.e., WisdomTree International and Opus Small go up and down completely randomly.
Pair Corralation between WisdomTree International and Opus Small
Considering the 90-day investment horizon WisdomTree International Equity is expected to generate 0.86 times more return on investment than Opus Small. However, WisdomTree International Equity is 1.17 times less risky than Opus Small. It trades about 0.11 of its potential returns per unit of risk. Opus Small Cap is currently generating about -0.06 per unit of risk. If you would invest 6,645 in WisdomTree International Equity on October 5, 2025 and sell it today you would earn a total of 291.00 from holding WisdomTree International Equity or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree International Equit vs. Opus Small Cap
Performance |
| Timeline |
| WisdomTree International |
| Opus Small Cap |
WisdomTree International and Opus Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree International and Opus Small
The main advantage of trading using opposite WisdomTree International and Opus Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree International position performs unexpectedly, Opus Small 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 Opus Small will offset losses from the drop in Opus Small's long position.The idea behind WisdomTree International Equity and Opus Small Cap 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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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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