Correlation Between Morgan Stanley and Asian Hotels
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By analyzing existing cross correlation between Morgan Stanley Direct and Asian Hotels and, you can compare the effects of market volatilities on Morgan Stanley and Asian Hotels 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 Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Asian Hotels.
Diversification Opportunities for Morgan Stanley and Asian Hotels
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Morgan and Asian is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and Asian Hotels and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Hotels 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 Asian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Hotels has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Asian Hotels go up and down completely randomly.
Pair Corralation between Morgan Stanley and Asian Hotels
Given the investment horizon of 90 days Morgan Stanley is expected to generate 1.93 times less return on investment than Asian Hotels. But when comparing it to its historical volatility, Morgan Stanley Direct is 1.87 times less risky than Asian Hotels. It trades about 0.24 of its potential returns per unit of risk. Asian Hotels and is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,590 in Asian Hotels and on September 14, 2024 and sell it today you would earn a total of 540.00 from holding Asian Hotels and or generate 9.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Morgan Stanley Direct vs. Asian Hotels and
Performance |
Timeline |
Morgan Stanley Direct |
Asian Hotels |
Morgan Stanley and Asian Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Morgan Stanley and Asian Hotels
The main advantage of trading using opposite Morgan Stanley and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Asian Hotels 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 Asian Hotels will offset losses from the drop in Asian Hotels' long position.Morgan Stanley vs. Sun Country Airlines | Morgan Stanley vs. Arm Holdings plc | Morgan Stanley vs. Ultra Clean Holdings | Morgan Stanley vs. Valens |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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