Correlation Between City National and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both City National 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 City National and Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City National Rochdale and Tiaa Cref Lifecycle Index, you can compare the effects of market volatilities on City National 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 City National with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Tiaa Cref.
Diversification Opportunities for City National and Tiaa Cref
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between City and Tiaa is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Tiaa Cref Lifecycle Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Lifecycle and City National 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 City National Rochdale 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 City National i.e., City National and Tiaa Cref go up and down completely randomly.
Pair Corralation between City National and Tiaa Cref
Assuming the 90 days horizon City National is expected to generate 461.0 times less return on investment than Tiaa Cref. But when comparing it to its historical volatility, City National Rochdale is 3.96 times less risky than Tiaa Cref. It trades about 0.0 of its potential returns per unit of risk. Tiaa Cref Lifecycle Index is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,465 in Tiaa Cref Lifecycle Index on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Tiaa Cref Lifecycle Index or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
City National Rochdale vs. Tiaa Cref Lifecycle Index
Performance |
| Timeline |
| City National Rochdale |
| Tiaa Cref Lifecycle |
City National and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City National and Tiaa Cref
The main advantage of trading using opposite City National and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National 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.| City National vs. Allianzgi Diversified Income | City National vs. Blackrock Conservative Prprdptfinstttnl | City National vs. Lord Abbett Diversified | City National vs. Wealthbuilder Conservative Allocation |
| Tiaa Cref vs. Gmo High Yield | Tiaa Cref vs. Voya High Yield | Tiaa Cref vs. Janus High Yield Fund | Tiaa Cref vs. City National Rochdale |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |