Correlation Between Saba Closed and WisdomTree Japan
Can any of the company-specific risk be diversified away by investing in both Saba Closed and WisdomTree Japan 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 Saba Closed and WisdomTree Japan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saba Closed End Funds and WisdomTree Japan SmallCap, you can compare the effects of market volatilities on Saba Closed and WisdomTree Japan 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 Saba Closed with a short position of WisdomTree Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saba Closed and WisdomTree Japan.
Diversification Opportunities for Saba Closed and WisdomTree Japan
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saba and WisdomTree is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Saba Closed End Funds and WisdomTree Japan SmallCap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Japan SmallCap and Saba Closed 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 Saba Closed End Funds are associated (or correlated) with WisdomTree Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Japan SmallCap has no effect on the direction of Saba Closed i.e., Saba Closed and WisdomTree Japan go up and down completely randomly.
Pair Corralation between Saba Closed and WisdomTree Japan
Given the investment horizon of 90 days Saba Closed is expected to generate 2.15 times less return on investment than WisdomTree Japan. But when comparing it to its historical volatility, Saba Closed End Funds is 1.05 times less risky than WisdomTree Japan. It trades about 0.19 of its potential returns per unit of risk. WisdomTree Japan SmallCap is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 9,489 in WisdomTree Japan SmallCap on October 13, 2025 and sell it today you would earn a total of 491.00 from holding WisdomTree Japan SmallCap or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saba Closed End Funds vs. WisdomTree Japan SmallCap
Performance |
| Timeline |
| Saba Closed End |
| WisdomTree Japan SmallCap |
Saba Closed and WisdomTree Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saba Closed and WisdomTree Japan
The main advantage of trading using opposite Saba Closed and WisdomTree Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saba Closed position performs unexpectedly, WisdomTree Japan 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 Japan will offset losses from the drop in WisdomTree Japan's long position.| Saba Closed vs. Northern Lights | Saba Closed vs. TCW ETF Trust | Saba Closed vs. Ea Bridgeway Blue | Saba Closed vs. iShares MSCI Netherlands |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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