Correlation Between WisdomTree Japan and Saba Capital
Can any of the company-specific risk be diversified away by investing in both WisdomTree Japan 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 Japan 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 Japan Hedged and Saba Capital Income, you can compare the effects of market volatilities on WisdomTree Japan 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 Japan with a short position of Saba Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Japan and Saba Capital.
Diversification Opportunities for WisdomTree Japan and Saba Capital
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WisdomTree and Saba is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Japan Hedged 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 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 Hedged 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 Japan i.e., WisdomTree Japan and Saba Capital go up and down completely randomly.
Pair Corralation between WisdomTree Japan and Saba Capital
Given the investment horizon of 90 days WisdomTree Japan Hedged is expected to generate 2.01 times more return on investment than Saba Capital. However, WisdomTree Japan is 2.01 times more volatile than Saba Capital Income. It trades about 0.27 of its potential returns per unit of risk. Saba Capital Income is currently generating about -0.16 per unit of risk. If you would invest 4,238 in WisdomTree Japan Hedged on November 4, 2025 and sell it today you would earn a total of 764.00 from holding WisdomTree Japan Hedged or generate 18.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.72% |
| Values | Daily Returns |
WisdomTree Japan Hedged vs. Saba Capital Income
Performance |
| Timeline |
| WisdomTree Japan Hedged |
| Saba Capital Income |
WisdomTree Japan and Saba Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Japan and Saba Capital
The main advantage of trading using opposite WisdomTree Japan and Saba Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Japan 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 Japan vs. WisdomTree Europe Hedged | WisdomTree Japan vs. Global X MSCI | WisdomTree Japan vs. iShares Fixed Income | WisdomTree Japan vs. iShares MSCI Global |
| Saba Capital vs. Alliancebernstein National Municipal | Saba Capital vs. Templeton Emerging Markets | Saba Capital vs. Nuveen Global High | Saba Capital vs. Pimco Strategic Income |
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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