Correlation Between Tiaa Cref and First Eagle
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and First Eagle 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 First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Smallmid Cap Equity and First Eagle Global, you can compare the effects of market volatilities on Tiaa Cref and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and First Eagle.
Diversification Opportunities for Tiaa Cref and First Eagle
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tiaa and First is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Smallmid Cap Equity and First Eagle Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Global 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 Smallmid Cap Equity are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Global has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and First Eagle go up and down completely randomly.
Pair Corralation between Tiaa Cref and First Eagle
Assuming the 90 days horizon Tiaa Cref Smallmid Cap Equity is expected to generate 2.76 times more return on investment than First Eagle. However, Tiaa Cref is 2.76 times more volatile than First Eagle Global. It trades about 0.13 of its potential returns per unit of risk. First Eagle Global is currently generating about 0.12 per unit of risk. If you would invest 1,503 in Tiaa Cref Smallmid Cap Equity on September 1, 2024 and sell it today you would earn a total of 285.00 from holding Tiaa Cref Smallmid Cap Equity or generate 18.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Tiaa Cref Smallmid Cap Equity vs. First Eagle Global
Performance |
| Timeline |
| Tiaa Cref Smallmid |
| First Eagle Global |
Tiaa Cref and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and First Eagle
The main advantage of trading using opposite Tiaa Cref and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Tiaa Cref vs. American Funds Conservative | Tiaa Cref vs. Adams Diversified Equity | Tiaa Cref vs. Evaluator Conservative Rms | Tiaa Cref vs. Lord Abbett Diversified |
| First Eagle vs. T Rowe Price | First Eagle vs. Small Cap Stock | First Eagle vs. Delaware Limited Term Diversified | First Eagle vs. Tiaa Cref Smallmid Cap Equity |
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 CEOs Directory module to screen CEOs from public companies around the world.
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