Correlation Between Nasdaq 100 and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 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 Nasdaq 100 and Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Fund Class and Tiaa Cref Large Cap Growth, you can compare the effects of market volatilities on Nasdaq 100 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 Nasdaq 100 with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Tiaa Cref.
Diversification Opportunities for Nasdaq 100 and Tiaa Cref
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nasdaq and Tiaa is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Fund Class and Tiaa Cref Large Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Large and Nasdaq 100 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 Nasdaq 100 Fund Class 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 Large has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Tiaa Cref go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Tiaa Cref
Assuming the 90 days horizon Nasdaq 100 Fund Class is expected to generate 0.61 times more return on investment than Tiaa Cref. However, Nasdaq 100 Fund Class is 1.64 times less risky than Tiaa Cref. It trades about 0.17 of its potential returns per unit of risk. Tiaa Cref Large Cap Growth is currently generating about -0.06 per unit of risk. If you would invest 7,830 in Nasdaq 100 Fund Class on September 14, 2024 and sell it today you would earn a total of 269.00 from holding Nasdaq 100 Fund Class or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Fund Class vs. Tiaa Cref Large Cap Growth
Performance |
| Timeline |
| Nasdaq 100 Fund |
| Tiaa Cref Large |
Nasdaq 100 and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Tiaa Cref
The main advantage of trading using opposite Nasdaq 100 and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 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.| Nasdaq 100 vs. Nasdaq 100 Fund Class | Nasdaq 100 vs. Nasdaq 100 Fund Class | Nasdaq 100 vs. Nasdaq 100 Profund Nasdaq 100 | Nasdaq 100 vs. Select Fund R |
| Tiaa Cref vs. Tiaa Cref Large Cap Growth | Tiaa Cref vs. Tiaa Cref Mid Cap Growth | Tiaa Cref vs. Tiaa Cref Growth Income | Tiaa Cref vs. Tiaa Cref Large Cap Value |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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