Correlation Between Nasdaq 100 and Tiaa-cref Large-cap
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Tiaa-cref Large-cap 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 Large-cap 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 Large-cap 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 Large-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Tiaa-cref Large-cap.
Diversification Opportunities for Nasdaq 100 and Tiaa-cref Large-cap
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nasdaq and Tiaa-cref is 0.28. 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-cap 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 Large-cap. 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-cap has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Tiaa-cref Large-cap go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Tiaa-cref Large-cap
Assuming the 90 days horizon Nasdaq 100 Fund Class is expected to under-perform the Tiaa-cref Large-cap. In addition to that, Nasdaq 100 is 1.77 times more volatile than Tiaa Cref Large Cap Growth. It trades about -0.18 of its total potential returns per unit of risk. Tiaa Cref Large Cap Growth is currently generating about 0.05 per unit of volatility. If you would invest 2,901 in Tiaa Cref Large Cap Growth on October 9, 2024 and sell it today you would earn a total of 33.00 from holding Tiaa Cref Large Cap Growth or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Fund Class vs. Tiaa Cref Large Cap Growth
Performance |
| Timeline |
| Nasdaq 100 Fund |
| Tiaa-cref Large-cap |
Nasdaq 100 and Tiaa-cref Large-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Tiaa-cref Large-cap
The main advantage of trading using opposite Nasdaq 100 and Tiaa-cref Large-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Tiaa-cref Large-cap 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 Large-cap will offset losses from the drop in Tiaa-cref Large-cap'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 |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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