Correlation Between HIVE Blockchain and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both HIVE Blockchain 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 HIVE Blockchain and Morgan Stanley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HIVE Blockchain Technologies and Morgan Stanley, you can compare the effects of market volatilities on HIVE Blockchain 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 HIVE Blockchain with a short position of Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIVE Blockchain and Morgan Stanley.
Diversification Opportunities for HIVE Blockchain and Morgan Stanley
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HIVE and Morgan is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding HIVE Blockchain Technologies and Morgan Stanley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley and HIVE Blockchain 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 HIVE Blockchain Technologies 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 HIVE Blockchain i.e., HIVE Blockchain and Morgan Stanley go up and down completely randomly.
Pair Corralation between HIVE Blockchain and Morgan Stanley
Given the investment horizon of 90 days HIVE Blockchain Technologies is expected to generate 5.53 times more return on investment than Morgan Stanley. However, HIVE Blockchain is 5.53 times more volatile than Morgan Stanley. It trades about 0.0 of its potential returns per unit of risk. Morgan Stanley is currently generating about -0.07 per unit of risk. If you would invest 411.00 in HIVE Blockchain Technologies on August 28, 2024 and sell it today you would lose (18.00) from holding HIVE Blockchain Technologies or give up 4.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HIVE Blockchain Technologies vs. Morgan Stanley
Performance |
| Timeline |
| HIVE Blockchain Tech |
| Morgan Stanley |
HIVE Blockchain and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIVE Blockchain and Morgan Stanley
The main advantage of trading using opposite HIVE Blockchain and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIVE Blockchain 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.| HIVE Blockchain vs. PowerUp Acquisition Corp | HIVE Blockchain vs. Aurora Innovation | HIVE Blockchain vs. HUMANA INC | HIVE Blockchain vs. Aquagold International |
| Morgan Stanley vs. Bank of America | Morgan Stanley vs. JPMorgan Chase Co | Morgan Stanley vs. Wells Fargo | Morgan Stanley vs. JPMorgan Chase Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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