Correlation Between Wasatch International and SMART Earnings
Can any of the company-specific risk be diversified away by investing in both Wasatch International and SMART Earnings 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 Wasatch International and SMART Earnings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wasatch International Select and SMART Earnings Growth, you can compare the effects of market volatilities on Wasatch International and SMART Earnings 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 Wasatch International with a short position of SMART Earnings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasatch International and SMART Earnings.
Diversification Opportunities for Wasatch International and SMART Earnings
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wasatch and SMART is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch International Select and SMART Earnings Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMART Earnings Growth and Wasatch 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 Wasatch International Select are associated (or correlated) with SMART Earnings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMART Earnings Growth has no effect on the direction of Wasatch International i.e., Wasatch International and SMART Earnings go up and down completely randomly.
Pair Corralation between Wasatch International and SMART Earnings
Assuming the 90 days horizon Wasatch International Select is expected to under-perform the SMART Earnings. But the mutual fund apears to be less risky and, when comparing its historical volatility, Wasatch International Select is 193.93 times less risky than SMART Earnings. The mutual fund trades about -0.26 of its potential returns per unit of risk. The SMART Earnings Growth is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.00 in SMART Earnings Growth on August 13, 2025 and sell it today you would earn a total of 2,466 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 | 95.24% |
| Values | Daily Returns |
Wasatch International Select vs. SMART Earnings Growth
Performance |
| Timeline |
| Wasatch International |
| SMART Earnings Growth |
Wasatch International and SMART Earnings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasatch International and SMART Earnings
The main advantage of trading using opposite Wasatch International and SMART Earnings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasatch International position performs unexpectedly, SMART Earnings 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 SMART Earnings will offset losses from the drop in SMART Earnings' long position.| Wasatch International vs. SMART Earnings Growth | Wasatch International vs. WisdomTree High Income | Wasatch International vs. WisdomTree Core Laddered | Wasatch International vs. Energy Services Fund |
| SMART Earnings vs. WisdomTree Core Laddered | SMART Earnings vs. WisdomTree High Income | SMART Earnings vs. Wasatch International Select | SMART Earnings vs. Consumer Goods Ultrasector |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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