Correlation Between Morgan Stanley and Hugo Boss
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and Hugo Boss 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 Hugo Boss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morgan Stanley Direct and Hugo Boss AG, you can compare the effects of market volatilities on Morgan Stanley and Hugo Boss 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 Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Hugo Boss.
Diversification Opportunities for Morgan Stanley and Hugo Boss
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Morgan and Hugo is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG 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 Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Hugo Boss go up and down completely randomly.
Pair Corralation between Morgan Stanley and Hugo Boss
Given the investment horizon of 90 days Morgan Stanley Direct is expected to generate 0.23 times more return on investment than Hugo Boss. However, Morgan Stanley Direct is 4.34 times less risky than Hugo Boss. It trades about 0.24 of its potential returns per unit of risk. Hugo Boss AG is currently generating about 0.02 per unit of risk. If you would invest 2,029 in Morgan Stanley Direct on September 14, 2024 and sell it today you would earn a total of 101.00 from holding Morgan Stanley Direct or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Morgan Stanley Direct vs. Hugo Boss AG
Performance |
| Timeline |
| Morgan Stanley Direct |
| Hugo Boss AG |
Morgan Stanley and Hugo Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and Hugo Boss
The main advantage of trading using opposite Morgan Stanley and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.| Morgan Stanley vs. Sun Country Airlines | Morgan Stanley vs. Arm Holdings plc | Morgan Stanley vs. Ultra Clean Holdings | Morgan Stanley vs. Valens |
| Hugo Boss vs. VF Corporation | Hugo Boss vs. Levi Strauss Co | Hugo Boss vs. Under Armour C | Hugo Boss vs. Under Armour A |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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