Correlation Between Elfun Government and Tiaa Cref

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Tiaa Cref 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 Elfun Government and Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Government Money and Tiaa Cref Lifecycle 2050, you can compare the effects of market volatilities on Elfun Government and Tiaa Cref 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 Elfun Government with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Tiaa Cref.

Diversification Opportunities for Elfun Government and Tiaa Cref

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Elfun and Tiaa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Tiaa Cref Lifecycle 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Lifecycle and Elfun Government 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 Elfun Government Money are associated (or correlated) with Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Lifecycle has no effect on the direction of Elfun Government i.e., Elfun Government and Tiaa Cref go up and down completely randomly.

Pair Corralation between Elfun Government and Tiaa Cref

If you would invest  1,551  in Tiaa Cref Lifecycle 2050 on September 12, 2024 and sell it today you would earn a total of  4.00  from holding Tiaa Cref Lifecycle 2050 or generate 0.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Elfun Government Money  vs.  Tiaa Cref Lifecycle 2050

 Performance 
       Timeline  
Elfun Government Money 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Elfun Government Money has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Elfun Government is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Tiaa Cref Lifecycle 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Lifecycle 2050 are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Tiaa Cref is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Elfun Government and Tiaa Cref Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Elfun Government and Tiaa Cref

The main advantage of trading using opposite Elfun Government and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.
The idea behind Elfun Government Money and Tiaa Cref Lifecycle 2050 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

Other Complementary Tools

Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites