Correlation Between Morgan Stanley and Bit Origin
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and Bit Origin 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 Bit Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morgan Stanley and Bit Origin, you can compare the effects of market volatilities on Morgan Stanley and Bit Origin 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 Bit Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Bit Origin.
Diversification Opportunities for Morgan Stanley and Bit Origin
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Morgan and Bit is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley and Bit Origin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bit Origin 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 Bit Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bit Origin has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Bit Origin go up and down completely randomly.
Pair Corralation between Morgan Stanley and Bit Origin
Allowing for the 90-day total investment horizon Morgan Stanley is expected to generate 0.26 times more return on investment than Bit Origin. However, Morgan Stanley is 3.84 times less risky than Bit Origin. It trades about 0.07 of its potential returns per unit of risk. Bit Origin is currently generating about -0.26 per unit of risk. If you would invest 13,224 in Morgan Stanley on October 20, 2024 and sell it today you would earn a total of 563.00 from holding Morgan Stanley or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Morgan Stanley vs. Bit Origin
Performance |
| Timeline |
| Morgan Stanley |
| Bit Origin |
Morgan Stanley and Bit Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and Bit Origin
The main advantage of trading using opposite Morgan Stanley and Bit Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Bit Origin 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 Bit Origin will offset losses from the drop in Bit Origin's long position.| Morgan Stanley vs. Goldman Sachs Group | Morgan Stanley vs. Riot Blockchain | Morgan Stanley vs. Marathon Digital Holdings | Morgan Stanley vs. Applied Digital |
| Bit Origin vs. Better Choice | Bit Origin vs. Farmmi Inc | Bit Origin vs. Laird Superfood | Bit Origin vs. Planet Green 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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