Correlation Between Morgan Stanley and BCAP MSCI
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By analyzing existing cross correlation between Morgan Stanley Direct and BCAP MSCI Thailand, you can compare the effects of market volatilities on Morgan Stanley and BCAP MSCI 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 BCAP MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and BCAP MSCI.
Diversification Opportunities for Morgan Stanley and BCAP MSCI
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Morgan and BCAP is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and BCAP MSCI Thailand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCAP MSCI Thailand 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 BCAP MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCAP MSCI Thailand has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and BCAP MSCI go up and down completely randomly.
Pair Corralation between Morgan Stanley and BCAP MSCI
Given the investment horizon of 90 days Morgan Stanley Direct is expected to generate 1.14 times more return on investment than BCAP MSCI. However, Morgan Stanley is 1.14 times more volatile than BCAP MSCI Thailand. It trades about 0.06 of its potential returns per unit of risk. BCAP MSCI Thailand is currently generating about -0.18 per unit of risk. If you would invest 1,897 in Morgan Stanley Direct on December 10, 2024 and sell it today you would earn a total of 118.00 from holding Morgan Stanley Direct or generate 6.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.19% |
Values | Daily Returns |
Morgan Stanley Direct vs. BCAP MSCI Thailand
Performance |
Timeline |
Morgan Stanley Direct |
BCAP MSCI Thailand |
Morgan Stanley and BCAP MSCI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Morgan Stanley and BCAP MSCI
The main advantage of trading using opposite Morgan Stanley and BCAP MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, BCAP MSCI 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 BCAP MSCI will offset losses from the drop in BCAP MSCI's long position.Morgan Stanley vs. IDP Education Limited | Morgan Stanley vs. Daily Journal Corp | Morgan Stanley vs. Hochschild Mining PLC | Morgan Stanley vs. Meta Platforms |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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