Correlation Between Morgan Stanley and Shanghai Laimu
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By analyzing existing cross correlation between Morgan Stanley Direct and Shanghai Laimu Electronics, you can compare the effects of market volatilities on Morgan Stanley and Shanghai Laimu 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 Shanghai Laimu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Shanghai Laimu.
Diversification Opportunities for Morgan Stanley and Shanghai Laimu
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Morgan and Shanghai is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and Shanghai Laimu Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Laimu Elect 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 Shanghai Laimu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Laimu Elect has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Shanghai Laimu go up and down completely randomly.
Pair Corralation between Morgan Stanley and Shanghai Laimu
Given the investment horizon of 90 days Morgan Stanley Direct is expected to generate 0.37 times more return on investment than Shanghai Laimu. However, Morgan Stanley Direct is 2.72 times less risky than Shanghai Laimu. It trades about 0.3 of its potential returns per unit of risk. Shanghai Laimu Electronics is currently generating about 0.06 per unit of risk. If you would invest 1,996 in Morgan Stanley Direct on September 13, 2024 and sell it today you would earn a total of 134.00 from holding Morgan Stanley Direct or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Morgan Stanley Direct vs. Shanghai Laimu Electronics
Performance |
| Timeline |
| Morgan Stanley Direct |
| Shanghai Laimu Elect |
Morgan Stanley and Shanghai Laimu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and Shanghai Laimu
The main advantage of trading using opposite Morgan Stanley and Shanghai Laimu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Shanghai Laimu 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 Shanghai Laimu will offset losses from the drop in Shanghai Laimu's long position.| Morgan Stanley vs. Tesla Inc | Morgan Stanley vs. Genfit | Morgan Stanley vs. Pinterest | Morgan Stanley vs. Tarsus Pharmaceuticals |
| Shanghai Laimu vs. Jiujiang Shanshui Technology | Shanghai Laimu vs. Kuang Chi Technologies | Shanghai Laimu vs. Xiwang Foodstuffs Co | Shanghai Laimu vs. Guilin Seamild Foods |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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