Correlation Between VIENNA INSURANCE and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE 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 VIENNA INSURANCE and Morgan Stanley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIENNA INSURANCE GR and Morgan Stanley, you can compare the effects of market volatilities on VIENNA INSURANCE 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 VIENNA INSURANCE with a short position of Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and Morgan Stanley.
Diversification Opportunities for VIENNA INSURANCE and Morgan Stanley
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between VIENNA and Morgan is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Morgan Stanley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley and VIENNA INSURANCE 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 VIENNA INSURANCE GR 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 VIENNA INSURANCE i.e., VIENNA INSURANCE and Morgan Stanley go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and Morgan Stanley
Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.26 times more return on investment than Morgan Stanley. However, VIENNA INSURANCE GR is 3.8 times less risky than Morgan Stanley. It trades about 0.11 of its potential returns per unit of risk. Morgan Stanley is currently generating about -0.04 per unit of risk. If you would invest 3,020 in VIENNA INSURANCE GR on October 14, 2024 and sell it today you would earn a total of 25.00 from holding VIENNA INSURANCE GR or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIENNA INSURANCE GR vs. Morgan Stanley
Performance |
| Timeline |
| VIENNA INSURANCE |
| Morgan Stanley |
VIENNA INSURANCE and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIENNA INSURANCE and Morgan Stanley
The main advantage of trading using opposite VIENNA INSURANCE and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE 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.| VIENNA INSURANCE vs. Darden Restaurants | VIENNA INSURANCE vs. FORMPIPE SOFTWARE AB | VIENNA INSURANCE vs. AXWAY SOFTWARE EO | VIENNA INSURANCE vs. AIR PRODCHEMICALS |
| Morgan Stanley vs. Astral Foods Limited | Morgan Stanley vs. VIENNA INSURANCE GR | Morgan Stanley vs. Safety Insurance Group | Morgan Stanley vs. National Beverage Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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