Correlation Between Tiaa-cref Real and Kellner Merger
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Real and Kellner Merger 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 Real and Kellner Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Real Estate and Kellner Merger Fund, you can compare the effects of market volatilities on Tiaa-cref Real and Kellner Merger 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 Real with a short position of Kellner Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Real and Kellner Merger.
Diversification Opportunities for Tiaa-cref Real and Kellner Merger
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tiaa-cref and Kellner is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Real Estate and Kellner Merger Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellner Merger and Tiaa-cref Real 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 Real Estate are associated (or correlated) with Kellner Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellner Merger has no effect on the direction of Tiaa-cref Real i.e., Tiaa-cref Real and Kellner Merger go up and down completely randomly.
Pair Corralation between Tiaa-cref Real and Kellner Merger
Assuming the 90 days horizon Tiaa Cref Real Estate is expected to generate 0.59 times more return on investment than Kellner Merger. However, Tiaa Cref Real Estate is 1.68 times less risky than Kellner Merger. It trades about -0.28 of its potential returns per unit of risk. Kellner Merger Fund is currently generating about -0.25 per unit of risk. If you would invest 1,904 in Tiaa Cref Real Estate on October 9, 2024 and sell it today you would lose (124.00) from holding Tiaa Cref Real Estate or give up 6.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 84.21% |
| Values | Daily Returns |
Tiaa Cref Real Estate vs. Kellner Merger Fund
Performance |
| Timeline |
| Tiaa Cref Real |
| Kellner Merger |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tiaa-cref Real and Kellner Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Real and Kellner Merger
The main advantage of trading using opposite Tiaa-cref Real and Kellner Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Real position performs unexpectedly, Kellner Merger 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 Kellner Merger will offset losses from the drop in Kellner Merger's long position.| Tiaa-cref Real vs. Columbia Moderate Growth | Tiaa-cref Real vs. Tiaa Cref Lifestyle Moderate | Tiaa-cref Real vs. Sierra E Retirement | Tiaa-cref Real vs. Voya Target Retirement |
| Kellner Merger vs. Barings High Yield | Kellner Merger vs. Ft 7934 Corporate | Kellner Merger vs. Enhanced Fixed Income | Kellner Merger vs. Maryland Tax Free Bond |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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