Correlation Between Credit Suisse and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both Credit Suisse 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 Credit Suisse and Morgan Stanley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Suisse Multialternative and Morgan Stanley Multi, you can compare the effects of market volatilities on Credit Suisse 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 Credit Suisse with a short position of Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Suisse and Morgan Stanley.
Diversification Opportunities for Credit Suisse and Morgan Stanley
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CREDIT and Morgan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Credit Suisse Multialternative and Morgan Stanley Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley Multi and Credit Suisse 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 Credit Suisse Multialternative 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 Multi has no effect on the direction of Credit Suisse i.e., Credit Suisse and Morgan Stanley go up and down completely randomly.
Pair Corralation between Credit Suisse and Morgan Stanley
Assuming the 90 days horizon Credit Suisse is expected to generate 3.58 times less return on investment than Morgan Stanley. But when comparing it to its historical volatility, Credit Suisse Multialternative is 7.55 times less risky than Morgan Stanley. It trades about 0.38 of its potential returns per unit of risk. Morgan Stanley Multi is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,474 in Morgan Stanley Multi on October 29, 2024 and sell it today you would earn a total of 67.00 from holding Morgan Stanley Multi or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Suisse Multialternative vs. Morgan Stanley Multi
Performance |
| Timeline |
| Credit Suisse Multia |
| Morgan Stanley Multi |
Credit Suisse and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Suisse and Morgan Stanley
The main advantage of trading using opposite Credit Suisse and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Suisse 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.| Credit Suisse vs. Stringer Growth Fund | Credit Suisse vs. Small Cap Growth | Credit Suisse vs. Artisan Small Cap | Credit Suisse vs. Eip Growth And |
| Morgan Stanley vs. Wells Fargo Advantage | Morgan Stanley vs. Deutsche Gold Precious | Morgan Stanley vs. Goldman Sachs Strategic | Morgan Stanley vs. Vy Goldman Sachs |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |