Correlation Between Wasatch-hoisington and Wasatch Micro
Can any of the company-specific risk be diversified away by investing in both Wasatch-hoisington and Wasatch Micro 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-hoisington and Wasatch Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wasatch Hoisington Treasury Fund and Wasatch Micro Cap, you can compare the effects of market volatilities on Wasatch-hoisington and Wasatch Micro 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-hoisington with a short position of Wasatch Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasatch-hoisington and Wasatch Micro.
Diversification Opportunities for Wasatch-hoisington and Wasatch Micro
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wasatch-hoisington and Wasatch is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch Hoisington Treasury Fu and Wasatch Micro Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch Micro Cap and Wasatch-hoisington 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 Hoisington Treasury Fund are associated (or correlated) with Wasatch Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Micro Cap has no effect on the direction of Wasatch-hoisington i.e., Wasatch-hoisington and Wasatch Micro go up and down completely randomly.
Pair Corralation between Wasatch-hoisington and Wasatch Micro
Assuming the 90 days horizon Wasatch-hoisington is expected to generate 5.65 times less return on investment than Wasatch Micro. But when comparing it to its historical volatility, Wasatch Hoisington Treasury Fund is 1.34 times less risky than Wasatch Micro. It trades about 0.03 of its potential returns per unit of risk. Wasatch Micro Cap is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 757.00 in Wasatch Micro Cap on May 29, 2025 and sell it today you would earn a total of 75.00 from holding Wasatch Micro Cap or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wasatch Hoisington Treasury Fu vs. Wasatch Micro Cap
Performance |
| Timeline |
| Wasatch Hoisington |
| Wasatch Micro Cap |
Wasatch-hoisington and Wasatch Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wasatch-hoisington and Wasatch Micro
The main advantage of trading using opposite Wasatch-hoisington and Wasatch Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasatch-hoisington position performs unexpectedly, Wasatch Micro 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 Micro will offset losses from the drop in Wasatch Micro's long position.| Wasatch-hoisington vs. Zero Pon 2025 | Wasatch-hoisington vs. Wasatch World Innovators | Wasatch-hoisington vs. Wasatch Small Cap | Wasatch-hoisington vs. Wasatch International Growth |
| Wasatch Micro vs. Wasatch Small Cap | Wasatch Micro vs. Wasatch Ultra Growth | Wasatch Micro vs. Wasatch E Growth | Wasatch Micro vs. Wasatch Small Cap |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |