Correlation Between Wasatch Micro and Wasatch Us

Can any of the company-specific risk be diversified away by investing in both Wasatch Micro 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 Micro 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 Micro Cap and Wasatch Select Inst, you can compare the effects of market volatilities on Wasatch Micro 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 Micro with a short position of Wasatch Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wasatch Micro and Wasatch Us.

Diversification Opportunities for Wasatch Micro and Wasatch Us

0.0

Correlation Coefficient

Wasatch Micro  Wasatch Us

Pay attention - limited upside

The 3 months correlation between Wasatch and Wasatch is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wasatch Micro Cap 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 Micro 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 Micro Cap 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 Micro i.e., Wasatch Micro and Wasatch Us go up and down completely randomly.

Pair Corralation between Wasatch Micro and Wasatch Us

Assuming the 90 days horizon Wasatch Micro Cap is expected to under-perform the Wasatch Us. But the mutual fund apears to be less risky and, when comparing its historical volatility, Wasatch Micro Cap is 1.13 times less risky than Wasatch Us. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Wasatch Select Inst is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,478  in Wasatch Select Inst on August 1, 2025 and sell it today you would earn a total of  39.00  from holding Wasatch Select Inst or generate 2.64% return on investment over 90 days.

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

Wasatch Micro Cap  vs.  Wasatch Select Inst

Wasatch Micro Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wasatch Micro Cap are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Wasatch Micro may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Wasatch Select Inst

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Wasatch Select Inst are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. 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 Micro and Wasatch Us

The main advantage of trading using opposite Wasatch Micro and Wasatch Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wasatch Micro 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 Micro Cap 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.