Correlation Between WisdomTree Japan and Saba Closed
Can any of the company-specific risk be diversified away by investing in both WisdomTree Japan and Saba Closed 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 Japan and Saba Closed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Japan SmallCap and Saba Closed End Funds, you can compare the effects of market volatilities on WisdomTree Japan and Saba Closed 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 Japan with a short position of Saba Closed. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Japan and Saba Closed.
Diversification Opportunities for WisdomTree Japan and Saba Closed
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and Saba is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Japan SmallCap and Saba Closed End Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saba Closed End and WisdomTree Japan 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 Japan SmallCap are associated (or correlated) with Saba Closed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saba Closed End has no effect on the direction of WisdomTree Japan i.e., WisdomTree Japan and Saba Closed go up and down completely randomly.
Pair Corralation between WisdomTree Japan and Saba Closed
Considering the 90-day investment horizon WisdomTree Japan SmallCap is expected to generate 0.94 times more return on investment than Saba Closed. However, WisdomTree Japan SmallCap is 1.06 times less risky than Saba Closed. It trades about 0.32 of its potential returns per unit of risk. Saba Closed End Funds is currently generating about 0.17 per unit of risk. If you would invest 9,633 in WisdomTree Japan SmallCap on October 14, 2025 and sell it today you would earn a total of 374.00 from holding WisdomTree Japan SmallCap or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Japan SmallCap vs. Saba Closed End Funds
Performance |
| Timeline |
| WisdomTree Japan SmallCap |
| Saba Closed End |
WisdomTree Japan and Saba Closed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Japan and Saba Closed
The main advantage of trading using opposite WisdomTree Japan and Saba Closed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Japan position performs unexpectedly, Saba Closed 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 Closed will offset losses from the drop in Saba Closed's long position.| WisdomTree Japan vs. WisdomTree SmallCap Quality | WisdomTree Japan vs. iShares MSCI Indonesia | WisdomTree Japan vs. WisdomTree Cloud Computing | WisdomTree Japan vs. Davis Select Financial |
| Saba Closed vs. Northern Lights | Saba Closed vs. TCW ETF Trust | Saba Closed vs. Ea Bridgeway Blue | Saba Closed vs. iShares MSCI Netherlands |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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