Correlation Between Wasatch International and Wasatch Us

Can any of the company-specific risk be diversified away by investing in both Wasatch International and Wasatch Us 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 International and Wasatch Us into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Wasatch International Value and Wasatch Select Inst, you can compare the effects of market volatilities on Wasatch International and Wasatch Us 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 International with a short position of Wasatch Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasatch International and Wasatch Us.

Diversification Opportunities for Wasatch International and Wasatch Us

0.04

Correlation Coefficient

Wasatch International  Wasatch Us

Significant diversification

The 3 months correlation between Wasatch and Wasatch is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch International Value and Wasatch Select Inst in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch Select Inst and Wasatch International 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 International Value are associated (or correlated) with Wasatch Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Select Inst has no effect on the direction of Wasatch International i.e., Wasatch International and Wasatch Us go up and down completely randomly.

Pair Corralation between Wasatch International and Wasatch Us

Assuming the 90 days horizon Wasatch International Value is expected to generate 0.44 times more return on investment than Wasatch Us. However, Wasatch International Value is 2.25 times less risky than Wasatch Us. It trades about 0.22 of its potential returns per unit of risk. Wasatch Select Inst is currently generating about 0.01 per unit of risk. If you would invest  1,255  in Wasatch International Value on August 5, 2025 and sell it today you would earn a total of  91.00  from holding Wasatch International Value or generate 7.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Wasatch International Value  vs.  Wasatch Select Inst

Wasatch International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wasatch International Value are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Wasatch International may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Wasatch Select Inst

Risk-Adjusted Performance

Weakest

Over the last 90 days Wasatch Select Inst has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Wasatch Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Wasatch International and Wasatch Us

The main advantage of trading using opposite Wasatch International and Wasatch Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasatch International position performs unexpectedly, Wasatch Us 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 Us will offset losses from the drop in Wasatch Us' long position.

The idea behind Wasatch International Value and Wasatch Select Inst pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.