Correlation Between Morgan Stanley and Pimco Global
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and Pimco Global 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 Pimco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morgan Stanley India and Pimco Global Multi Asset, you can compare the effects of market volatilities on Morgan Stanley and Pimco Global 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 Pimco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Pimco Global.
Diversification Opportunities for Morgan Stanley and Pimco Global
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Morgan and Pimco is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley India and Pimco Global Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Global Multi 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 India are associated (or correlated) with Pimco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Global Multi has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Pimco Global go up and down completely randomly.
Pair Corralation between Morgan Stanley and Pimco Global
Considering the 90-day investment horizon Morgan Stanley India is expected to generate 1.54 times more return on investment than Pimco Global. However, Morgan Stanley is 1.54 times more volatile than Pimco Global Multi Asset. It trades about 0.16 of its potential returns per unit of risk. Pimco Global Multi Asset is currently generating about 0.11 per unit of risk. If you would invest 2,442 in Morgan Stanley India on March 28, 2025 and sell it today you would earn a total of 334.00 from holding Morgan Stanley India or generate 13.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Morgan Stanley India vs. Pimco Global Multi Asset
Performance |
| Timeline |
| Morgan Stanley India |
| Pimco Global Multi |
Morgan Stanley and Pimco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and Pimco Global
The main advantage of trading using opposite Morgan Stanley and Pimco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Pimco Global 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 Pimco Global will offset losses from the drop in Pimco Global's long position.| Morgan Stanley vs. Aberdeen Income Credit | Morgan Stanley vs. BlackRock Utility Infrastructure | Morgan Stanley vs. Aberdeen Australia Ef | Morgan Stanley vs. Pgim High Yield |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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