Correlation Between Tiaa Cref and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and Icon Financial 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 Icon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Large Cap Value and Icon Financial Fund, you can compare the effects of market volatilities on Tiaa Cref and Icon Financial 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 Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Icon Financial.
Diversification Opportunities for Tiaa Cref and Icon Financial
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tiaa and Icon is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Large Cap Value and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial 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 Large Cap Value are associated (or correlated) with Icon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Financial has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Icon Financial go up and down completely randomly.
Pair Corralation between Tiaa Cref and Icon Financial
Assuming the 90 days horizon Tiaa Cref Large Cap Value is expected to generate 0.55 times more return on investment than Icon Financial. However, Tiaa Cref Large Cap Value is 1.81 times less risky than Icon Financial. It trades about 0.08 of its potential returns per unit of risk. Icon Financial Fund is currently generating about 0.0 per unit of risk. If you would invest 2,299 in Tiaa Cref Large Cap Value on September 14, 2024 and sell it today you would earn a total of 352.00 from holding Tiaa Cref Large Cap Value or generate 15.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Tiaa Cref Large Cap Value vs. Icon Financial Fund
Performance |
| Timeline |
| Tiaa Cref Large |
| Icon Financial |
Tiaa Cref and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and Icon Financial
The main advantage of trading using opposite Tiaa Cref and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref position performs unexpectedly, Icon Financial 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 Icon Financial will offset losses from the drop in Icon Financial's long position.| Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets |
| Icon Financial vs. Science Technology Fund | Icon Financial vs. Goldman Sachs Technology | Icon Financial vs. Allianzgi Technology Fund | Icon Financial vs. Janus Global Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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