Correlation Between ANT and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both ANT and Morgan Stanley 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 ANT and Morgan Stanley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Morgan Stanley Direct, you can compare the effects of market volatilities on ANT and Morgan Stanley 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 ANT with a short position of Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Morgan Stanley.
Diversification Opportunities for ANT and Morgan Stanley
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANT and Morgan is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Morgan Stanley Direct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley Direct and ANT 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 ANT are associated (or correlated) with Morgan Stanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morgan Stanley Direct has no effect on the direction of ANT i.e., ANT and Morgan Stanley go up and down completely randomly.
Pair Corralation between ANT and Morgan Stanley
Assuming the 90 days trading horizon ANT is expected to generate 16.97 times more return on investment than Morgan Stanley. However, ANT is 16.97 times more volatile than Morgan Stanley Direct. It trades about 0.1 of its potential returns per unit of risk. Morgan Stanley Direct is currently generating about 0.02 per unit of risk. If you would invest 127.00 in ANT on November 2, 2024 and sell it today you would earn a total of 20.00 from holding ANT or generate 15.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.02% |
| Values | Daily Returns |
ANT vs. Morgan Stanley Direct
Performance |
| Timeline |
| ANT |
| Morgan Stanley Direct |
ANT and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Morgan Stanley
The main advantage of trading using opposite ANT and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Morgan Stanley 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 Morgan Stanley will offset losses from the drop in Morgan Stanley's long position.The idea behind ANT and Morgan Stanley Direct 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.| Morgan Stanley vs. Hertz Global Hldgs | Morgan Stanley vs. Seadrill Limited | Morgan Stanley vs. Integrated Drilling Equipment | Morgan Stanley vs. Precision Drilling |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |