Correlation Between Opus Small and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Opus Small and WisdomTree 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 Opus Small and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opus Small Cap and WisdomTree International Equity, you can compare the effects of market volatilities on Opus Small and WisdomTree 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 Opus Small with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opus Small and WisdomTree International.
Diversification Opportunities for Opus Small and WisdomTree International
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Opus and WisdomTree is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Opus Small Cap and WisdomTree International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Opus Small 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 Opus Small Cap are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of Opus Small i.e., Opus Small and WisdomTree International go up and down completely randomly.
Pair Corralation between Opus Small and WisdomTree International
Given the investment horizon of 90 days Opus Small is expected to generate 1.34 times less return on investment than WisdomTree International. In addition to that, Opus Small is 1.16 times more volatile than WisdomTree International Equity. It trades about 0.11 of its total potential returns per unit of risk. WisdomTree International Equity is currently generating about 0.17 per unit of volatility. If you would invest 6,679 in WisdomTree International Equity on October 18, 2025 and sell it today you would earn a total of 416.00 from holding WisdomTree International Equity or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Opus Small Cap vs. WisdomTree International Equit
Performance |
| Timeline |
| Opus Small Cap |
| WisdomTree International |
Opus Small and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opus Small and WisdomTree International
The main advantage of trading using opposite Opus Small and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opus Small position performs unexpectedly, WisdomTree 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 WisdomTree International will offset losses from the drop in WisdomTree International's long position.| Opus Small vs. Avantis Real Estate | Opus Small vs. BlackRock ETF Trust | Opus Small vs. Harris Oakmark ETF | Opus Small vs. John Hancock Multifactor |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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