Correlation Between Samsung Electronics and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Morgan Stanley 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 Samsung Electronics and Morgan Stanley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Morgan Stanley, you can compare the effects of market volatilities on Samsung Electronics and Morgan Stanley 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 Samsung Electronics with a short position of Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Morgan Stanley.
Diversification Opportunities for Samsung Electronics and Morgan Stanley
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Morgan is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Morgan Stanley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley and Samsung Electronics 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 Samsung Electronics Co are associated (or correlated) with Morgan Stanley. 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 has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Morgan Stanley go up and down completely randomly.
Pair Corralation between Samsung Electronics and Morgan Stanley
If you would invest 245,000 in Morgan Stanley on October 20, 2024 and sell it today you would earn a total of 33,600 from holding Morgan Stanley or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Morgan Stanley
Performance |
| Timeline |
| Samsung Electronics |
| Morgan Stanley |
Samsung Electronics and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Morgan Stanley
The main advantage of trading using opposite Samsung Electronics and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Morgan Stanley 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 Stanley will offset losses from the drop in Morgan Stanley's long position.| Samsung Electronics vs. Grupo Industrial Saltillo | Samsung Electronics vs. Delta Air Lines | Samsung Electronics vs. Ameriprise Financial | Samsung Electronics vs. Grupo Sports World |
| Morgan Stanley vs. The Charles Schwab | Morgan Stanley vs. The Goldman Sachs | Morgan Stanley vs. Value Grupo Financiero | Morgan Stanley vs. Corporativo GBM SAB |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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