Correlation Between Tiaa-cref Growth and Nasdaq-100 Fund
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Growth and Nasdaq-100 Fund 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 Growth and Nasdaq-100 Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Growth Income and Nasdaq 100 Fund Class, you can compare the effects of market volatilities on Tiaa-cref Growth and Nasdaq-100 Fund 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 Growth with a short position of Nasdaq-100 Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Growth and Nasdaq-100 Fund.
Diversification Opportunities for Tiaa-cref Growth and Nasdaq-100 Fund
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tiaa-cref and Nasdaq-100 is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Growth Income and Nasdaq 100 Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Fund and Tiaa-cref Growth 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 Growth Income are associated (or correlated) with Nasdaq-100 Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 Fund has no effect on the direction of Tiaa-cref Growth i.e., Tiaa-cref Growth and Nasdaq-100 Fund go up and down completely randomly.
Pair Corralation between Tiaa-cref Growth and Nasdaq-100 Fund
Assuming the 90 days horizon Tiaa Cref Growth Income is expected to generate 0.81 times more return on investment than Nasdaq-100 Fund. However, Tiaa Cref Growth Income is 1.24 times less risky than Nasdaq-100 Fund. It trades about 0.07 of its potential returns per unit of risk. Nasdaq 100 Fund Class is currently generating about -0.01 per unit of risk. If you would invest 1,534 in Tiaa Cref Growth Income on October 23, 2024 and sell it today you would earn a total of 17.00 from holding Tiaa Cref Growth Income or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Growth Income vs. Nasdaq 100 Fund Class
Performance |
| Timeline |
| Tiaa Cref Growth |
| Nasdaq 100 Fund |
Tiaa-cref Growth and Nasdaq-100 Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Growth and Nasdaq-100 Fund
The main advantage of trading using opposite Tiaa-cref Growth and Nasdaq-100 Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Growth position performs unexpectedly, Nasdaq-100 Fund 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 Nasdaq-100 Fund will offset losses from the drop in Nasdaq-100 Fund's long position.| Tiaa-cref Growth vs. Select Fund C | Tiaa-cref Growth vs. Nasdaq 100 Fund Class | Tiaa-cref Growth vs. Tiaa Cref Growth Income | Tiaa-cref Growth vs. Select Fund R |
| Nasdaq-100 Fund vs. Nasdaq 100 Fund Class | Nasdaq-100 Fund vs. Nasdaq 100 Fund Class | Nasdaq-100 Fund vs. Nasdaq 100 Profund Nasdaq 100 | Nasdaq-100 Fund vs. Select Fund R |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |