Correlation Between Tiaa Cref and Tiaa-cref Lifecycle
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and Tiaa-cref Lifecycle 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 Tiaa Cref and Tiaa-cref Lifecycle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Lifecycle Index and Tiaa Cref Lifecycle 2050, you can compare the effects of market volatilities on Tiaa Cref and Tiaa-cref Lifecycle 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 Tiaa Cref with a short position of Tiaa-cref Lifecycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Tiaa-cref Lifecycle.
Diversification Opportunities for Tiaa Cref and Tiaa-cref Lifecycle
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Tiaa and Tiaa-cref is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Lifecycle Index 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 Tiaa Cref 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 Tiaa Cref Lifecycle Index are associated (or correlated) with Tiaa-cref Lifecycle. 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 Tiaa Cref i.e., Tiaa Cref and Tiaa-cref Lifecycle go up and down completely randomly.
Pair Corralation between Tiaa Cref and Tiaa-cref Lifecycle
Assuming the 90 days horizon Tiaa Cref Lifecycle Index is expected to generate 1.09 times more return on investment than Tiaa-cref Lifecycle. However, Tiaa Cref is 1.09 times more volatile than Tiaa Cref Lifecycle 2050. It trades about 0.3 of its potential returns per unit of risk. Tiaa Cref Lifecycle 2050 is currently generating about 0.3 per unit of risk. If you would invest 1,414 in Tiaa Cref Lifecycle Index on September 1, 2024 and sell it today you would earn a total of 53.00 from holding Tiaa Cref Lifecycle Index or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Lifecycle Index vs. Tiaa Cref Lifecycle 2050
Performance |
| Timeline |
| Tiaa Cref Lifecycle |
| Tiaa Cref Lifecycle |
Tiaa Cref and Tiaa-cref Lifecycle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and Tiaa-cref Lifecycle
The main advantage of trading using opposite Tiaa Cref and Tiaa-cref Lifecycle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref position performs unexpectedly, Tiaa-cref Lifecycle 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 Lifecycle will offset losses from the drop in Tiaa-cref Lifecycle's long position.| Tiaa Cref vs. Fidelity Advisor Financial | Tiaa Cref vs. Davis Financial Fund | Tiaa Cref vs. Gabelli Global Financial | Tiaa Cref vs. Goldman Sachs Financial |
| Tiaa-cref Lifecycle vs. Pace International Emerging | Tiaa-cref Lifecycle vs. Shelton Emerging Markets | Tiaa-cref Lifecycle vs. Franklin Emerging Market | Tiaa-cref Lifecycle vs. Ashmore Emerging Markets |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |