Correlation Between FIBRA Storage and Morgan Stanley
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By analyzing existing cross correlation between FIBRA Storage and Morgan Stanley, you can compare the effects of market volatilities on FIBRA Storage 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 FIBRA Storage with a short position of Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and Morgan Stanley.
Diversification Opportunities for FIBRA Storage and Morgan Stanley
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FIBRA and Morgan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and Morgan Stanley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley and FIBRA Storage 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 FIBRA Storage 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 FIBRA Storage i.e., FIBRA Storage and Morgan Stanley go up and down completely randomly.
Pair Corralation between FIBRA Storage and Morgan Stanley
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 3.93 times less return on investment than Morgan Stanley. But when comparing it to its historical volatility, FIBRA Storage is 3.88 times less risky than Morgan Stanley. It trades about 0.17 of its potential returns per unit of risk. Morgan Stanley is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 238,448 in Morgan Stanley on August 31, 2024 and sell it today you would earn a total of 29,052 from holding Morgan Stanley or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIBRA Storage vs. Morgan Stanley
Performance |
| Timeline |
| FIBRA Storage |
| Morgan Stanley |
FIBRA Storage and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and Morgan Stanley
The main advantage of trading using opposite FIBRA Storage and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage 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.| FIBRA Storage vs. Prudential Financial | FIBRA Storage vs. Monster Beverage Corp | FIBRA Storage vs. New Oriental Education | FIBRA Storage vs. Micron Technology |
| Morgan Stanley vs. Applied Materials | Morgan Stanley vs. CVS Health | Morgan Stanley vs. Verizon Communications | Morgan Stanley vs. FIBRA Storage |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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