Correlation Between Morgan Stanley and Aegon NV
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and Aegon NV 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 Morgan Stanley and Aegon NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morgan Stanley and Aegon NV PERP, you can compare the effects of market volatilities on Morgan Stanley and Aegon NV 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 Morgan Stanley with a short position of Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Aegon NV.
Diversification Opportunities for Morgan Stanley and Aegon NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Morgan and Aegon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley and Aegon NV PERP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon NV PERP and Morgan Stanley 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 Morgan Stanley are associated (or correlated) with Aegon NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon NV PERP has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Aegon NV go up and down completely randomly.
Pair Corralation between Morgan Stanley and Aegon NV
If you would invest 8,464 in Morgan Stanley on September 2, 2024 and sell it today you would earn a total of 4,697 from holding Morgan Stanley or generate 55.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Morgan Stanley vs. Aegon NV PERP
Performance |
| Timeline |
| Morgan Stanley |
| Aegon NV PERP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Morgan Stanley and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and Aegon NV
The main advantage of trading using opposite Morgan Stanley and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Aegon NV 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 Aegon NV will offset losses from the drop in Aegon NV's long position.| Morgan Stanley vs. Goldman Sachs Group | Morgan Stanley vs. Riot Blockchain | Morgan Stanley vs. Marathon Digital Holdings | Morgan Stanley vs. Applied Blockchain |
| Aegon NV vs. Summit Hotel Properties | Aegon NV vs. Morgan Stanley | Aegon NV vs. Hooker Furniture | Aegon NV vs. Lindblad Expeditions Holdings |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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