Correlation Between Tiaa-cref Lifecycle and Live Oak
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Lifecycle and Live Oak 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 Lifecycle and Live Oak 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 Live Oak Health, you can compare the effects of market volatilities on Tiaa-cref Lifecycle and Live Oak 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 Lifecycle with a short position of Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Lifecycle and Live Oak.
Diversification Opportunities for Tiaa-cref Lifecycle and Live Oak
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tiaa-cref and Live is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Lifecycle Index and Live Oak Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Oak Health and Tiaa-cref Lifecycle 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 Live Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Oak Health has no effect on the direction of Tiaa-cref Lifecycle i.e., Tiaa-cref Lifecycle and Live Oak go up and down completely randomly.
Pair Corralation between Tiaa-cref Lifecycle and Live Oak
Assuming the 90 days horizon Tiaa Cref Lifecycle Index is expected to generate 1.0 times more return on investment than Live Oak. However, Tiaa-cref Lifecycle is 1.0 times more volatile than Live Oak Health. It trades about -0.29 of its potential returns per unit of risk. Live Oak Health is currently generating about -0.39 per unit of risk. If you would invest 2,823 in Tiaa Cref Lifecycle Index on October 9, 2024 and sell it today you would lose (137.00) from holding Tiaa Cref Lifecycle Index or give up 4.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Lifecycle Index vs. Live Oak Health
Performance |
| Timeline |
| Tiaa Cref Lifecycle |
| Live Oak Health |
Tiaa-cref Lifecycle and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Lifecycle and Live Oak
The main advantage of trading using opposite Tiaa-cref Lifecycle and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Lifecycle position performs unexpectedly, Live Oak 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 Live Oak will offset losses from the drop in Live Oak's long position.| Tiaa-cref Lifecycle vs. Fidelity Small Cap | Tiaa-cref Lifecycle vs. Small Cap Value | Tiaa-cref Lifecycle vs. Valic Company I | Tiaa-cref Lifecycle vs. Applied Finance Explorer |
| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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