Correlation Between SMART Earnings and Wasatch International
Can any of the company-specific risk be diversified away by investing in both SMART Earnings and Wasatch 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 SMART Earnings and Wasatch International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMART Earnings Growth and Wasatch International Select, you can compare the effects of market volatilities on SMART Earnings and Wasatch 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 SMART Earnings with a short position of Wasatch International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMART Earnings and Wasatch International.
Diversification Opportunities for SMART Earnings and Wasatch International
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SMART and Wasatch is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding SMART Earnings Growth and Wasatch International Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch International and SMART Earnings 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 SMART Earnings Growth are associated (or correlated) with Wasatch International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch International has no effect on the direction of SMART Earnings i.e., SMART Earnings and Wasatch International go up and down completely randomly.
Pair Corralation between SMART Earnings and Wasatch International
Given the investment horizon of 90 days SMART Earnings Growth is expected to generate 189.19 times more return on investment than Wasatch International. However, SMART Earnings is 189.19 times more volatile than Wasatch International Select. It trades about 0.13 of its potential returns per unit of risk. Wasatch International Select is currently generating about -0.28 per unit of risk. If you would invest 0.00 in SMART Earnings Growth on August 18, 2025 and sell it today you would earn a total of 2,376 from holding SMART Earnings Growth or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
SMART Earnings Growth vs. Wasatch International Select
Performance |
| Timeline |
| SMART Earnings Growth |
| Wasatch International |
SMART Earnings and Wasatch International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMART Earnings and Wasatch International
The main advantage of trading using opposite SMART Earnings and Wasatch International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMART Earnings position performs unexpectedly, Wasatch 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 Wasatch International will offset losses from the drop in Wasatch International's long position.| SMART Earnings vs. WisdomTree Core Laddered | SMART Earnings vs. WisdomTree High Income | SMART Earnings vs. Wasatch International Select | SMART Earnings vs. Consumer Goods Ultrasector |
| Wasatch International vs. SMART Earnings Growth | Wasatch International vs. WisdomTree High Income | Wasatch International vs. WisdomTree Core Laddered | Wasatch International vs. Energy Services Fund |
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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