Correlation Between Morgan Stanley and Equinox Campbell
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and Equinox Campbell 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 Equinox Campbell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morgan Stanley Direct and Equinox Campbell Strategy, you can compare the effects of market volatilities on Morgan Stanley and Equinox Campbell 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 Equinox Campbell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Equinox Campbell.
Diversification Opportunities for Morgan Stanley and Equinox Campbell
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Morgan and Equinox is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and Equinox Campbell Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinox Campbell Strategy 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 Equinox Campbell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinox Campbell Strategy has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Equinox Campbell go up and down completely randomly.
Pair Corralation between Morgan Stanley and Equinox Campbell
Given the investment horizon of 90 days Morgan Stanley is expected to generate 6.32 times less return on investment than Equinox Campbell. In addition to that, Morgan Stanley is 1.98 times more volatile than Equinox Campbell Strategy. It trades about 0.01 of its total potential returns per unit of risk. Equinox Campbell Strategy is currently generating about 0.17 per unit of volatility. If you would invest 879.00 in Equinox Campbell Strategy on September 24, 2024 and sell it today you would earn a total of 17.00 from holding Equinox Campbell Strategy or generate 1.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Morgan Stanley Direct vs. Equinox Campbell Strategy
Performance |
Timeline |
Morgan Stanley Direct |
Equinox Campbell Strategy |
Morgan Stanley and Equinox Campbell Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Morgan Stanley and Equinox Campbell
The main advantage of trading using opposite Morgan Stanley and Equinox Campbell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Equinox Campbell 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 Equinox Campbell will offset losses from the drop in Equinox Campbell's long position.Morgan Stanley vs. Uranium Energy Corp | Morgan Stanley vs. Alaska Air Group | Morgan Stanley vs. Coursera | Morgan Stanley vs. Four Seasons Education |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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