Correlation Between Morgan Stanley and Cohen Steers

Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and Cohen Steers 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 Cohen Steers 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 Cohen Steers Reit, you can compare the effects of market volatilities on Morgan Stanley and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Cohen Steers.

Diversification Opportunities for Morgan Stanley and Cohen Steers

-0.53

Correlation Coefficient

Morgan Stanley  Cohen Steers

Excellent diversification

The 3 months correlation between Morgan and Cohen is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Institutional and Cohen Steers Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Reit 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Reit has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Cohen Steers go up and down completely randomly.

Pair Corralation between Morgan Stanley and Cohen Steers

If you would invest  2,095  in Cohen Steers Reit on October 23, 2024 and sell it today you would earn a total of  18.00  from holding Cohen Steers Reit or generate 0.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	94.74%
Values	Daily Returns

Morgan Stanley Institutional  vs.  Cohen Steers Reit

Morgan Stanley Insti

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Morgan Stanley Institutional are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. 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.

Cohen Steers Reit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cohen Steers Reit has generated negative risk-adjusted returns adding no value to fund investors. Even with latest fragile performance, the Fund's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the fund retail investors.

Pair Trading with Morgan Stanley and Cohen Steers

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

The idea behind Morgan Stanley Institutional and Cohen Steers Reit 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.