Correlation Between Tiaa Cref and State Street
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and State Street 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 State Street 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 State Street Target, you can compare the effects of market volatilities on Tiaa Cref and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and State Street.
Diversification Opportunities for Tiaa Cref and State Street
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tiaa and State is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Smallmid Cap Equity and State Street Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Target 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Target has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and State Street go up and down completely randomly.
Pair Corralation between Tiaa Cref and State Street
Assuming the 90 days horizon Tiaa Cref Smallmid Cap Equity is expected to under-perform the State Street. In addition to that, Tiaa Cref is 5.85 times more volatile than State Street Target. It trades about -0.16 of its total potential returns per unit of risk. State Street Target is currently generating about 0.18 per unit of volatility. If you would invest 1,665 in State Street Target on September 13, 2024 and sell it today you would earn a total of 29.00 from holding State Street Target or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Smallmid Cap Equity vs. State Street Target
Performance |
| Timeline |
| Tiaa Cref Smallmid |
| State Street Target |
Tiaa Cref and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and State Street
The main advantage of trading using opposite Tiaa Cref and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Tiaa Cref vs. Pace International Emerging | Tiaa Cref vs. Eagle Mlp Strategy | Tiaa Cref vs. Origin Emerging Markets | Tiaa Cref vs. Dws Emerging Markets |
| State Street vs. Calvert High Yield | State Street vs. Lgm Risk Managed | State Street vs. Ppm High Yield | State Street vs. California High Yield Municipal |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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