Correlation Between Morgan Stanley and HANetf ICAV

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

Diversification Opportunities for Morgan Stanley and HANetf ICAV

0.17

Correlation Coefficient

Morgan Stanley  HANetf ICAV

Average diversification

The 3 months correlation between Morgan and HANetf is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and HANetf ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANetf ICAV 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 HANetf ICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANetf ICAV has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and HANetf ICAV go up and down completely randomly.

Pair Corralation between Morgan Stanley and HANetf ICAV

Given the investment horizon of 90 days Morgan Stanley Direct is expected to under-perform the HANetf ICAV. In addition to that, Morgan Stanley is 1.12 times more volatile than HANetf ICAV . It trades about -0.03 of its total potential returns per unit of risk. HANetf ICAV is currently generating about 0.06 per unit of volatility. If you would invest  890.00  in HANetf ICAV on September 25, 2024 and sell it today you would earn a total of  79.00  from holding HANetf ICAV or generate 8.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	97.66%
Values	Daily Returns

Morgan Stanley Direct  vs.  HANetf ICAV

Morgan Stanley Direct

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Morgan Stanley Direct are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain fundamental indicators, Morgan Stanley may actually be approaching a critical reversion point that can send shares even higher in January 2025.

HANetf ICAV

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in HANetf ICAV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, HANetf ICAV is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Morgan Stanley and HANetf ICAV

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

The idea behind Morgan Stanley Direct and HANetf ICAV 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.