Correlation Between Morgan Stanley and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and Mainstay Large 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 Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morgan Stanley Emerging and Mainstay Large Cap, you can compare the effects of market volatilities on Morgan Stanley and Mainstay Large 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 Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Mainstay Large.
Diversification Opportunities for Morgan Stanley and Mainstay Large
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Morgan and Mainstay is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Emerging and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Emerging are associated (or correlated) with Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Mainstay Large go up and down completely randomly.
Pair Corralation between Morgan Stanley and Mainstay Large
Assuming the 90 days horizon Morgan Stanley is expected to generate 2.01 times less return on investment than Mainstay Large. But when comparing it to its historical volatility, Morgan Stanley Emerging is 2.53 times less risky than Mainstay Large. It trades about 0.11 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,199 in Mainstay Large Cap on September 12, 2024 and sell it today you would earn a total of 18.00 from holding Mainstay Large Cap or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Morgan Stanley Emerging vs. Mainstay Large Cap
Performance |
| Timeline |
| Morgan Stanley Emerging |
| Mainstay Large Cap |
Morgan Stanley and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and Mainstay Large
The main advantage of trading using opposite Morgan Stanley and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Mainstay Large 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 Mainstay Large will offset losses from the drop in Mainstay Large's long position.| Morgan Stanley vs. Cmg Ultra Short | Morgan Stanley vs. Alpine Ultra Short | Morgan Stanley vs. Touchstone Ultra Short | Morgan Stanley vs. Franklin Federal Limited Term |
| Mainstay Large vs. Mainstay Sp 500 | Mainstay Large vs. Mainstay Balanced Fund | Mainstay Large vs. Mainstay Balanced Fund |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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