Correlation Between Morgan Stanley and Jupiter Marine

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

Diversification Opportunities for Morgan Stanley and Jupiter Marine

MorganJupiterDiversified AwayMorganJupiterDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Morgan and Jupiter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and Jupiter Marine International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Marine Inter 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 Jupiter Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Marine Inter has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Jupiter Marine go up and down completely randomly.

Pair Corralation between Morgan Stanley and Jupiter Marine

If you would invest  2,000  in Morgan Stanley Direct on November 20, 2024 and sell it today you would earn a total of  89.00  from holding Morgan Stanley Direct or generate 4.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy96.72%
ValuesDaily Returns

Morgan Stanley Direct  vs.  Jupiter Marine International

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20246810
JavaScript chart by amCharts 3.21.15MSDL JMIH
       Timeline  
Morgan Stanley Direct 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Morgan Stanley Direct are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, Morgan Stanley is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2020.52121.5
Jupiter Marine Inter 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Jupiter Marine International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Jupiter Marine is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.00010.0001050.000110.000115

Morgan Stanley and Jupiter Marine Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.08-2.31-1.53-0.760.01350.811.622.433.24 0.10.20.30.4
JavaScript chart by amCharts 3.21.15MSDL JMIH
       Returns  

Pair Trading with Morgan Stanley and Jupiter Marine

The main advantage of trading using opposite Morgan Stanley and Jupiter Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Jupiter Marine 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 Jupiter Marine will offset losses from the drop in Jupiter Marine's long position.
The idea behind Morgan Stanley Direct and Jupiter Marine International 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.
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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