Correlation Between Morgan Stanley and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and WisdomTree International 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 WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morgan Stanley ETF and WisdomTree International High, you can compare the effects of market volatilities on Morgan Stanley and WisdomTree International 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 WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and WisdomTree International.
Diversification Opportunities for Morgan Stanley and WisdomTree International
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Morgan and WisdomTree is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley ETF and WisdomTree International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International 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 ETF are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and WisdomTree International go up and down completely randomly.
Pair Corralation between Morgan Stanley and WisdomTree International
Given the investment horizon of 90 days Morgan Stanley ETF is expected to generate 1.73 times more return on investment than WisdomTree International. However, Morgan Stanley is 1.73 times more volatile than WisdomTree International High. It trades about 0.3 of its potential returns per unit of risk. WisdomTree International High is currently generating about 0.4 per unit of risk. If you would invest 2,604 in Morgan Stanley ETF on October 22, 2025 and sell it today you would earn a total of 94.00 from holding Morgan Stanley ETF or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Morgan Stanley ETF vs. WisdomTree International High
Performance |
| Timeline |
| Morgan Stanley ETF |
| WisdomTree International |
Morgan Stanley and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and WisdomTree International
The main advantage of trading using opposite Morgan Stanley and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, WisdomTree International 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 WisdomTree International will offset losses from the drop in WisdomTree International's long position.| Morgan Stanley vs. 2023 EFT Series | Morgan Stanley vs. Russell Equity Income | Morgan Stanley vs. OneAscent International Equity | Morgan Stanley vs. JP Morgan Exchange Traded |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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