Correlation Between Keeley Mid and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both Keeley Mid 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 Keeley Mid and Morgan Stanley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keeley Mid Cap and Morgan Stanley Focus, you can compare the effects of market volatilities on Keeley Mid 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 Keeley Mid with a short position of Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keeley Mid and Morgan Stanley.
Diversification Opportunities for Keeley Mid and Morgan Stanley
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Keeley and Morgan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Keeley Mid Cap and Morgan Stanley Focus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley Focus and Keeley Mid 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 Keeley Mid Cap 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 Focus has no effect on the direction of Keeley Mid i.e., Keeley Mid and Morgan Stanley go up and down completely randomly.
Pair Corralation between Keeley Mid and Morgan Stanley
Assuming the 90 days horizon Keeley Mid Cap is expected to generate 4.4 times more return on investment than Morgan Stanley. However, Keeley Mid is 4.4 times more volatile than Morgan Stanley Focus. It trades about 0.24 of its potential returns per unit of risk. Morgan Stanley Focus is currently generating about 0.1 per unit of risk. If you would invest 3,181 in Keeley Mid Cap on August 25, 2024 and sell it today you would earn a total of 192.00 from holding Keeley Mid Cap or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Keeley Mid Cap vs. Morgan Stanley Focus
Performance |
| Timeline |
| Keeley Mid Cap |
| Morgan Stanley Focus |
Keeley Mid and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keeley Mid and Morgan Stanley
The main advantage of trading using opposite Keeley Mid and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keeley Mid 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.| Keeley Mid vs. Victory Sycamore Established | Keeley Mid vs. Columbia Select Large Cap | Keeley Mid vs. Boston Trust Midcap | Keeley Mid vs. Bny Mellon Mid |
| Morgan Stanley vs. Needham Aggressive Growth | Morgan Stanley vs. T Rowe Price | Morgan Stanley vs. Victory High Income | Morgan Stanley vs. Pioneer High Income |
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 CEOs Directory module to screen CEOs from public companies around the world.
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