Correlation Between Morgan Stanley and Lyxor MSCI
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and Lyxor MSCI 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 Lyxor MSCI 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 Lyxor MSCI USA, you can compare the effects of market volatilities on Morgan Stanley and Lyxor MSCI 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 Lyxor MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Lyxor MSCI.
Diversification Opportunities for Morgan Stanley and Lyxor MSCI
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Morgan and Lyxor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Direct and Lyxor MSCI USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor MSCI USA 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 Lyxor MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor MSCI USA has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Lyxor MSCI go up and down completely randomly.
Pair Corralation between Morgan Stanley and Lyxor MSCI
If you would invest 2,127 in Morgan Stanley Direct on October 1, 2024 and sell it today you would earn a total of 5.00 from holding Morgan Stanley Direct or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Morgan Stanley Direct vs. Lyxor MSCI USA
Performance |
| Timeline |
| Morgan Stanley Direct |
| Lyxor MSCI USA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Morgan Stanley and Lyxor MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and Lyxor MSCI
The main advantage of trading using opposite Morgan Stanley and Lyxor MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Lyxor MSCI 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 Lyxor MSCI will offset losses from the drop in Lyxor MSCI's long position.| Morgan Stanley vs. EMCOR Group | Morgan Stanley vs. Chester Mining | Morgan Stanley vs. Everus Construction Group | Morgan Stanley vs. Highway Holdings Limited |
| Lyxor MSCI vs. Lyxor Smart Overnight | Lyxor MSCI vs. Lyxor UCITS EuroMTS | Lyxor MSCI vs. Lyxor Core UK | Lyxor MSCI vs. Lyxor Core Global |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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