Correlation Between WisdomTree Europe and Saba Capital
Can any of the company-specific risk be diversified away by investing in both WisdomTree Europe and Saba Capital 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 WisdomTree Europe and Saba Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Europe SmallCap and Saba Capital Income, you can compare the effects of market volatilities on WisdomTree Europe and Saba Capital 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 WisdomTree Europe with a short position of Saba Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Europe and Saba Capital.
Diversification Opportunities for WisdomTree Europe and Saba Capital
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WisdomTree and Saba is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Europe SmallCap and Saba Capital Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saba Capital Income and WisdomTree Europe 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 WisdomTree Europe SmallCap are associated (or correlated) with Saba Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saba Capital Income has no effect on the direction of WisdomTree Europe i.e., WisdomTree Europe and Saba Capital go up and down completely randomly.
Pair Corralation between WisdomTree Europe and Saba Capital
Considering the 90-day investment horizon WisdomTree Europe SmallCap is expected to generate 1.47 times more return on investment than Saba Capital. However, WisdomTree Europe is 1.47 times more volatile than Saba Capital Income. It trades about 0.25 of its potential returns per unit of risk. Saba Capital Income is currently generating about -0.15 per unit of risk. If you would invest 6,926 in WisdomTree Europe SmallCap on November 27, 2025 and sell it today you would earn a total of 796.00 from holding WisdomTree Europe SmallCap or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Europe SmallCap vs. Saba Capital Income
Performance |
| Timeline |
| WisdomTree Europe |
| Saba Capital Income |
WisdomTree Europe and Saba Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Europe and Saba Capital
The main advantage of trading using opposite WisdomTree Europe and Saba Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Europe position performs unexpectedly, Saba Capital 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 Saba Capital will offset losses from the drop in Saba Capital's long position.| WisdomTree Europe vs. WisdomTree International MidCap | WisdomTree Europe vs. iShares MSCI Turkey | WisdomTree Europe vs. iShares Currency Hedged | WisdomTree Europe vs. iShares MSCI Japan |
| Saba Capital vs. Abrdn Emerging Markets | Saba Capital vs. First Trust Senior | Saba Capital vs. MFS Multimarket Income | Saba Capital vs. Franklin Templeton Limited |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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