Correlation Between Old Republic and MORGAN
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By analyzing existing cross correlation between Old Republic International and MORGAN STANLEY MTN, you can compare the effects of market volatilities on Old Republic and MORGAN 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 Old Republic with a short position of MORGAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Republic and MORGAN.
Diversification Opportunities for Old Republic and MORGAN
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Old and MORGAN is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Old Republic International and MORGAN STANLEY MTN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MORGAN STANLEY MTN and Old Republic 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 Old Republic International are associated (or correlated) with MORGAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MORGAN STANLEY MTN has no effect on the direction of Old Republic i.e., Old Republic and MORGAN go up and down completely randomly.
Pair Corralation between Old Republic and MORGAN
Considering the 90-day investment horizon Old Republic International is expected to generate 0.94 times more return on investment than MORGAN. However, Old Republic International is 1.07 times less risky than MORGAN. It trades about 0.14 of its potential returns per unit of risk. MORGAN STANLEY MTN is currently generating about -0.05 per unit of risk. If you would invest 2,522 in Old Republic International on November 4, 2024 and sell it today you would earn a total of 1,136 from holding Old Republic International or generate 45.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.17% |
| Values | Daily Returns |
Old Republic International vs. MORGAN STANLEY MTN
Performance |
| Timeline |
| Old Republic Interna |
| MORGAN STANLEY MTN |
Old Republic and MORGAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Republic and MORGAN
The main advantage of trading using opposite Old Republic and MORGAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Republic position performs unexpectedly, MORGAN 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 MORGAN will offset losses from the drop in MORGAN's long position.| Old Republic vs. Axa Equitable Holdings | Old Republic vs. American International Group | Old Republic vs. Arch Capital Group | Old Republic vs. Sun Life Financial |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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