Correlation Between Morgan Stanley and Extended Market
Can any of the company-specific risk be diversified away by investing in both Morgan Stanley and Extended Market 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 Extended Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morgan Stanley Institutional and Extended Market Index, you can compare the effects of market volatilities on Morgan Stanley and Extended Market 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 Extended Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Stanley and Extended Market.
Diversification Opportunities for Morgan Stanley and Extended Market
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Morgan and Extended is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Stanley Institutional and Extended Market Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extended Market Index 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 Institutional are associated (or correlated) with Extended Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extended Market Index has no effect on the direction of Morgan Stanley i.e., Morgan Stanley and Extended Market go up and down completely randomly.
Pair Corralation between Morgan Stanley and Extended Market
If you would invest 2,006 in Extended Market Index on June 10, 2025 and sell it today you would earn a total of 203.00 from holding Extended Market Index or generate 10.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Morgan Stanley Institutional vs. Extended Market Index
Performance |
| Timeline |
| Morgan Stanley Insti |
| Extended Market Index |
Morgan Stanley and Extended Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Stanley and Extended Market
The main advantage of trading using opposite Morgan Stanley and Extended Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Stanley position performs unexpectedly, Extended Market 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 Extended Market will offset losses from the drop in Extended Market's long position.| Morgan Stanley vs. Nuveen Short Term | Morgan Stanley vs. Lord Abbett Short | Morgan Stanley vs. American Funds Tax Exempt | Morgan Stanley vs. Franklin Federal Limited Term |
| Extended Market vs. Income Fund Income | Extended Market vs. Usaa Nasdaq 100 | Extended Market vs. Victory Diversified Stock | Extended Market vs. Intermediate Term Bond 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |