Correlation Between ANTA SPORTS and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS 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 ANTA SPORTS and Morgan Stanley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANTA SPORTS PRODUCT and Morgan Stanley, you can compare the effects of market volatilities on ANTA SPORTS 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 ANTA SPORTS with a short position of Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and Morgan Stanley.
Diversification Opportunities for ANTA SPORTS and Morgan Stanley
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ANTA and Morgan is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and Morgan Stanley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley and ANTA SPORTS 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 ANTA SPORTS PRODUCT 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 has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and Morgan Stanley go up and down completely randomly.
Pair Corralation between ANTA SPORTS and Morgan Stanley
Assuming the 90 days trading horizon ANTA SPORTS is expected to generate 1.91 times less return on investment than Morgan Stanley. In addition to that, ANTA SPORTS is 1.59 times more volatile than Morgan Stanley. It trades about 0.03 of its total potential returns per unit of risk. Morgan Stanley is currently generating about 0.09 per unit of volatility. If you would invest 8,564 in Morgan Stanley on August 27, 2024 and sell it today you would earn a total of 4,434 from holding Morgan Stanley or generate 51.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 61.19% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. Morgan Stanley
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| Morgan Stanley |
ANTA SPORTS and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and Morgan Stanley
The main advantage of trading using opposite ANTA SPORTS and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS 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.| ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Apple Inc | ANTA SPORTS vs. Microsoft |
| Morgan Stanley vs. Chuangs China Investments | Morgan Stanley vs. Sims Metal Management | Morgan Stanley vs. Cleanaway Waste Management | Morgan Stanley vs. Corporate Travel Management |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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