Correlation Between Intel and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and Morgan Stanley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Morgan Stanley ETF, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Morgan Stanley.
Diversification Opportunities for Intel and Morgan Stanley
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intel and Morgan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Morgan Stanley ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley ETF and Intel 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 Intel 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 ETF has no effect on the direction of Intel i.e., Intel and Morgan Stanley go up and down completely randomly.
Pair Corralation between Intel and Morgan Stanley
Given the investment horizon of 90 days Intel is expected to generate 97.06 times more return on investment than Morgan Stanley. However, Intel is 97.06 times more volatile than Morgan Stanley ETF. It trades about 0.12 of its potential returns per unit of risk. Morgan Stanley ETF is currently generating about 0.64 per unit of risk. If you would invest 2,252 in Intel on September 3, 2024 and sell it today you would earn a total of 153.00 from holding Intel or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Morgan Stanley ETF
Performance |
| Timeline |
| Intel |
| Morgan Stanley ETF |
Intel and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Morgan Stanley
The main advantage of trading using opposite Intel and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Morgan Stanley vs. SCOR PK | Morgan Stanley vs. HUMANA INC | Morgan Stanley vs. Aquagold International | Morgan Stanley vs. Barloworld Ltd ADR |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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