Correlation Between Morgan Stanley and Ehave

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

Diversification Opportunities for Morgan Stanley and Ehave

0.31

Correlation Coefficient

Morgan Stanley  Ehave

Weak diversification

The 3 months correlation between Morgan and Ehave is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and Ehave Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ehave Inc 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 Ehave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ehave Inc has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Ehave go up and down completely randomly.

Pair Corralation between Morgan Stanley and Ehave

Given the investment horizon of 90 days Morgan Stanley is expected to generate 353.45 times less return on investment than Ehave. But when comparing it to its historical volatility, Morgan Stanley Direct is 82.06 times less risky than Ehave. It trades about 0.04 of its potential returns per unit of risk. Ehave Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Ehave Inc on September 15, 2024 and sell it today you would earn a total of  0.06  from holding Ehave Inc or generate 600.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	90.76%
Values	Daily Returns

Morgan Stanley Direct  vs.  Ehave Inc

Morgan Stanley Direct

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Morgan Stanley Direct are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating fundamental indicators, Morgan Stanley may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Ehave Inc

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ehave Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Ehave reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Morgan Stanley and Ehave

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

The idea behind Morgan Stanley Direct and Ehave Inc 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..