Correlation Between Morgan Stanley and China Southern
Specify exactly 2 symbols:
By analyzing existing cross correlation between Morgan Stanley Direct and China Southern SSE, you can compare the effects of market volatilities on Morgan Stanley and China Southern 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 China Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and China Southern.
Diversification Opportunities for Morgan Stanley and China Southern
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Morgan and China is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and China Southern SSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Southern SSE 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 Direct are associated (or correlated) with China Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Southern SSE has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and China Southern go up and down completely randomly.
Pair Corralation between Morgan Stanley and China Southern
Given the investment horizon of 90 days Morgan Stanley Direct is expected to generate 1.01 times more return on investment than China Southern. However, Morgan Stanley is 1.01 times more volatile than China Southern SSE. It trades about 0.04 of its potential returns per unit of risk. China Southern SSE is currently generating about 0.04 per unit of risk. If you would invest 1,907 in Morgan Stanley Direct on September 12, 2024 and sell it today you would earn a total of 232.00 from holding Morgan Stanley Direct or generate 12.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Morgan Stanley Direct vs. China Southern SSE
Performance |
| Timeline |
| Morgan Stanley Direct |
| China Southern SSE |
Morgan Stanley and China Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and China Southern
The main advantage of trading using opposite Morgan Stanley and China Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, China Southern 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 China Southern will offset losses from the drop in China Southern's long position.| Morgan Stanley vs. Pinterest | Morgan Stanley vs. Organic Sales and | Morgan Stanley vs. Global E Online | Morgan Stanley vs. Freedom Internet Group |
| China Southern vs. Shenzhen MTC Co | China Southern vs. Ming Yang Smart | China Southern vs. Changzhou Almaden Co | China Southern vs. 159681 |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world |