Correlation Between Morgan Stanley and NewGenIvf Group

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

Diversification Opportunities for Morgan Stanley and NewGenIvf Group

0.55

Correlation Coefficient

Morgan Stanley  NewGenIvf Group

Very weak diversification

The 3 months correlation between Morgan and NewGenIvf is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and NewGenIvf Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewGenIvf Group 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 NewGenIvf Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewGenIvf Group has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and NewGenIvf Group go up and down completely randomly.

Pair Corralation between Morgan Stanley and NewGenIvf Group

Given the investment horizon of 90 days Morgan Stanley is expected to generate 66.37 times less return on investment than NewGenIvf Group. But when comparing it to its historical volatility, Morgan Stanley Direct is 18.21 times less risky than NewGenIvf Group. It trades about 0.04 of its potential returns per unit of risk. NewGenIvf Group Limited is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1.55  in NewGenIvf Group Limited on October 3, 2024 and sell it today you would earn a total of  1.55  from holding NewGenIvf Group Limited or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	86.08%
Values	Daily Returns

Morgan Stanley Direct  vs.  NewGenIvf Group Limited

Morgan Stanley Direct

Risk-Adjusted Performance

8 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Morgan Stanley Direct are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile fundamental indicators, Morgan Stanley may actually be approaching a critical reversion point that can send shares even higher in February 2025.

NewGenIvf Group

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NewGenIvf Group Limited are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, NewGenIvf Group showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Morgan Stanley and NewGenIvf Group

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

The idea behind Morgan Stanley Direct and NewGenIvf Group Limited 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.