Correlation Between Morgan Stanley and SPECTRA
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By analyzing existing cross correlation between Morgan Stanley Direct and SPECTRA ENERGY PARTNERS, you can compare the effects of market volatilities on Morgan Stanley and SPECTRA 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 SPECTRA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and SPECTRA.
Diversification Opportunities for Morgan Stanley and SPECTRA
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Morgan and SPECTRA is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and SPECTRA ENERGY PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRA ENERGY PARTNERS 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 SPECTRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRA ENERGY PARTNERS has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and SPECTRA go up and down completely randomly.
Pair Corralation between Morgan Stanley and SPECTRA
Given the investment horizon of 90 days Morgan Stanley Direct is expected to generate 1.21 times more return on investment than SPECTRA. However, Morgan Stanley is 1.21 times more volatile than SPECTRA ENERGY PARTNERS. It trades about 0.13 of its potential returns per unit of risk. SPECTRA ENERGY PARTNERS is currently generating about -0.09 per unit of risk. If you would invest 1,977 in Morgan Stanley Direct on October 1, 2024 and sell it today you would earn a total of 158.00 from holding Morgan Stanley Direct or generate 7.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.83% |
Values | Daily Returns |
Morgan Stanley Direct vs. SPECTRA ENERGY PARTNERS
Performance |
Timeline |
Morgan Stanley Direct |
SPECTRA ENERGY PARTNERS |
Morgan Stanley and SPECTRA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Morgan Stanley and SPECTRA
The main advantage of trading using opposite Morgan Stanley and SPECTRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, SPECTRA 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 SPECTRA will offset losses from the drop in SPECTRA's long position.Morgan Stanley vs. EMCOR Group | ||
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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