Correlation Between Morgan Stanley and Oaktree (lux)

Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and Oaktree (lux) 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 Morgan Stanley and Oaktree (lux) into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Morgan Stanley Institutional and Oaktree Iii , you can compare the effects of market volatilities on Morgan Stanley and Oaktree (lux) 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 Oaktree (lux). Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Oaktree (lux).

Diversification Opportunities for Morgan Stanley and Oaktree (lux)

0.0

Correlation Coefficient

Morgan Stanley  Oaktree (lux)

Pay attention - limited upside

The 3 months correlation between Morgan and Oaktree is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Institutional and Oaktree Iii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree (lux) 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 Institutional are associated (or correlated) with Oaktree (lux). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree (lux) has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Oaktree (lux) go up and down completely randomly.

Pair Corralation between Morgan Stanley and Oaktree (lux)

If you would invest  13,501  in Oaktree Iii on December 24, 2024 and sell it today you would earn a total of  198.00  from holding Oaktree Iii or generate 1.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

Morgan Stanley Institutional  vs.  Oaktree Iii

Morgan Stanley Insti

Risk-Adjusted Performance

Very Weak

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

Oaktree (lux)

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oaktree Iii are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Oaktree (lux) is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Morgan Stanley and Oaktree (lux)

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

The idea behind Morgan Stanley Institutional and Oaktree Iii 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.