Correlation Between Morgan Stanley and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and Calamos 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 Calamos Global 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 Calamos Global Sustainable, you can compare the effects of market volatilities on Morgan Stanley and Calamos 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 Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Calamos Global.
Diversification Opportunities for Morgan Stanley and Calamos Global
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Morgan and Calamos is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and Calamos Global Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Susta 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 Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Susta has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Calamos Global go up and down completely randomly.
Pair Corralation between Morgan Stanley and Calamos Global
Given the investment horizon of 90 days Morgan Stanley Direct is expected to generate 2.29 times more return on investment than Calamos Global. However, Morgan Stanley is 2.29 times more volatile than Calamos Global Sustainable. It trades about 0.03 of its potential returns per unit of risk. Calamos Global Sustainable is currently generating about 0.06 per unit of risk. If you would invest 1,907 in Morgan Stanley Direct on September 24, 2024 and sell it today you would earn a total of 163.00 from holding Morgan Stanley Direct or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 43.35% |
| Values | Daily Returns |
Morgan Stanley Direct vs. Calamos Global Sustainable
Performance |
| Timeline |
| Morgan Stanley Direct |
| Calamos Global Susta |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Morgan Stanley and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and Calamos Global
The main advantage of trading using opposite Morgan Stanley and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Calamos 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 Calamos Global will offset losses from the drop in Calamos Global's long position.| Morgan Stanley vs. Uranium Energy Corp | Morgan Stanley vs. Alaska Air Group | Morgan Stanley vs. Coursera | Morgan Stanley vs. Four Seasons Education |
| Calamos Global vs. Baillie Gifford Health | Calamos Global vs. Alger Health Sciences | Calamos Global vs. Hartford Healthcare Hls | Calamos Global vs. Allianzgi Health Sciences |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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