Correlation Between Wasatch Ultra and Wasatch Emerging

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

By analyzing existing cross correlation between Wasatch Ultra Growth and Wasatch Emerging India, you can compare the effects of market volatilities on Wasatch Ultra and Wasatch Emerging 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 Ultra with a short position of Wasatch Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasatch Ultra and Wasatch Emerging.

Diversification Opportunities for Wasatch Ultra and Wasatch Emerging

0.33

Correlation Coefficient

Wasatch Ultra  Wasatch Emerging

Weak diversification

The 3 months correlation between Wasatch and Wasatch is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch Ultra Growth and Wasatch Emerging India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch Emerging India and Wasatch Ultra 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 Ultra Growth are associated (or correlated) with Wasatch Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Emerging India has no effect on the direction of Wasatch Ultra i.e., Wasatch Ultra and Wasatch Emerging go up and down completely randomly.

Pair Corralation between Wasatch Ultra and Wasatch Emerging

Assuming the 90 days horizon Wasatch Ultra Growth is expected to generate 1.51 times more return on investment than Wasatch Emerging. However, Wasatch Ultra is 1.51 times more volatile than Wasatch Emerging India. It trades about 0.01 of its potential returns per unit of risk. Wasatch Emerging India is currently generating about -0.07 per unit of risk. If you would invest  3,143  in Wasatch Ultra Growth on July 23, 2025 and sell it today you would earn a total of  11.00  from holding Wasatch Ultra Growth or generate 0.35% return on investment over 90 days.

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

Wasatch Ultra Growth  vs.  Wasatch Emerging India

Wasatch Ultra Growth

Risk-Adjusted Performance

Weakest

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

Wasatch Emerging India

Risk-Adjusted Performance

Weakest

Over the last 90 days Wasatch Emerging India has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Wasatch Emerging 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 Ultra and Wasatch Emerging

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

The idea behind Wasatch Ultra Growth and Wasatch Emerging India 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.