Correlation Between Morgan Stanley and Highland Global
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and Highland Global 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 Highland Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morgan Stanley Emerging and Highland Global Allocation, you can compare the effects of market volatilities on Morgan Stanley and Highland Global 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 Highland Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Highland Global.
Diversification Opportunities for Morgan Stanley and Highland Global
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Morgan and Highland is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Emerging and Highland Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Global Allo 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 Emerging are associated (or correlated) with Highland Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Global Allo has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Highland Global go up and down completely randomly.
Pair Corralation between Morgan Stanley and Highland Global
Considering the 90-day investment horizon Morgan Stanley Emerging is expected to generate 0.53 times more return on investment than Highland Global. However, Morgan Stanley Emerging is 1.9 times less risky than Highland Global. It trades about 0.14 of its potential returns per unit of risk. Highland Global Allocation is currently generating about 0.06 per unit of risk. If you would invest 762.00 in Morgan Stanley Emerging on August 28, 2024 and sell it today you would earn a total of 13.00 from holding Morgan Stanley Emerging or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Morgan Stanley Emerging vs. Highland Global Allocation
Performance |
| Timeline |
| Morgan Stanley Emerging |
| Highland Global Allo |
Morgan Stanley and Highland Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and Highland Global
The main advantage of trading using opposite Morgan Stanley and Highland Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Highland Global 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 Highland Global will offset losses from the drop in Highland Global's long position.| Morgan Stanley vs. Western Asset Mortgage | Morgan Stanley vs. Doubleline Income Solutions | Morgan Stanley vs. Doubleline Yield Opportunities | Morgan Stanley vs. Blackstone Gso Long |
| Highland Global vs. Neuberger Berman Next | Highland Global vs. Doubleline Yield Opportunities | Highland Global vs. Doubleline Income Solutions | Highland Global vs. Clough Global Ef |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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