Correlation Between Morgan Stanley and Xiamen ITG
Specify exactly 2 symbols:
By analyzing existing cross correlation between Morgan Stanley Direct and Xiamen ITG Group, you can compare the effects of market volatilities on Morgan Stanley and Xiamen ITG 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 Morgan Stanley with a short position of Xiamen ITG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Xiamen ITG.
Diversification Opportunities for Morgan Stanley and Xiamen ITG
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Morgan and Xiamen is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and Xiamen ITG Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen ITG Group and Morgan Stanley 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 Morgan Stanley Direct are associated (or correlated) with Xiamen ITG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen ITG Group has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Xiamen ITG go up and down completely randomly.
Pair Corralation between Morgan Stanley and Xiamen ITG
Given the investment horizon of 90 days Morgan Stanley Direct is expected to generate 0.99 times more return on investment than Xiamen ITG. However, Morgan Stanley Direct is 1.01 times less risky than Xiamen ITG. It trades about 0.09 of its potential returns per unit of risk. Xiamen ITG Group is currently generating about 0.02 per unit of risk. If you would invest 2,043 in Morgan Stanley Direct on September 23, 2024 and sell it today you would earn a total of 41.00 from holding Morgan Stanley Direct or generate 2.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Morgan Stanley Direct vs. Xiamen ITG Group
Performance |
Timeline |
Morgan Stanley Direct |
Xiamen ITG Group |
Morgan Stanley and Xiamen ITG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Morgan Stanley and Xiamen ITG
The main advantage of trading using opposite Morgan Stanley and Xiamen ITG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Xiamen ITG 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 Xiamen ITG will offset losses from the drop in Xiamen ITG's long position.Morgan Stanley vs. United Rentals | Morgan Stanley vs. HE Equipment Services | Morgan Stanley vs. Triton International Limited | Morgan Stanley vs. Ryanair Holdings PLC |
Xiamen ITG vs. China Life Insurance | Xiamen ITG vs. Cinda Securities Co | Xiamen ITG vs. Piotech Inc A | Xiamen ITG vs. Dongxing Sec Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |