Correlation Between Morgan Stanley and ThaiDex SET50
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and ThaiDex SET50 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 ThaiDex SET50 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 ThaiDex SET50 Exchange, you can compare the effects of market volatilities on Morgan Stanley and ThaiDex SET50 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 ThaiDex SET50. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and ThaiDex SET50.
Diversification Opportunities for Morgan Stanley and ThaiDex SET50
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Morgan and ThaiDex is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and ThaiDex SET50 Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ThaiDex SET50 Exchange 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 ThaiDex SET50. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ThaiDex SET50 Exchange has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and ThaiDex SET50 go up and down completely randomly.
Pair Corralation between Morgan Stanley and ThaiDex SET50
Given the investment horizon of 90 days Morgan Stanley Direct is expected to generate 0.87 times more return on investment than ThaiDex SET50. However, Morgan Stanley Direct is 1.16 times less risky than ThaiDex SET50. It trades about -0.01 of its potential returns per unit of risk. ThaiDex SET50 Exchange is currently generating about -0.25 per unit of risk. If you would invest 2,083 in Morgan Stanley Direct on December 28, 2024 and sell it today you would lose (19.00) from holding Morgan Stanley Direct or give up 0.91% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.39% |
Values | Daily Returns |
Morgan Stanley Direct vs. ThaiDex SET50 Exchange
Performance |
Timeline |
Morgan Stanley Direct |
ThaiDex SET50 Exchange |
Morgan Stanley and ThaiDex SET50 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Morgan Stanley and ThaiDex SET50
The main advantage of trading using opposite Morgan Stanley and ThaiDex SET50 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, ThaiDex SET50 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 ThaiDex SET50 will offset losses from the drop in ThaiDex SET50's long position.Morgan Stanley vs. NETGEAR | Morgan Stanley vs. Jerash Holdings | Morgan Stanley vs. AYRO Inc | Morgan Stanley vs. Mediaco Holding |
ThaiDex SET50 vs. United Hero ETF | ThaiDex SET50 vs. BCAP SET100 | ThaiDex SET50 vs. WISE KTAM CSI | ThaiDex SET50 vs. KTAM Gold ETF |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |