Correlation Between Tiaa-cref Small/mid-cap and Americafirst Large
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Small/mid-cap and Americafirst Large 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 Small/mid-cap and Americafirst Large 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 Americafirst Large Cap, you can compare the effects of market volatilities on Tiaa-cref Small/mid-cap and Americafirst Large 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 Small/mid-cap with a short position of Americafirst Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Small/mid-cap and Americafirst Large.
Diversification Opportunities for Tiaa-cref Small/mid-cap and Americafirst Large
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tiaa-cref and Americafirst is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Smallmid Cap Equity and Americafirst Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americafirst Large Cap and Tiaa-cref Small/mid-cap 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 Americafirst Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americafirst Large Cap has no effect on the direction of Tiaa-cref Small/mid-cap i.e., Tiaa-cref Small/mid-cap and Americafirst Large go up and down completely randomly.
Pair Corralation between Tiaa-cref Small/mid-cap and Americafirst Large
Assuming the 90 days horizon Tiaa Cref Smallmid Cap Equity is expected to generate 1.16 times more return on investment than Americafirst Large. However, Tiaa-cref Small/mid-cap is 1.16 times more volatile than Americafirst Large Cap. It trades about 0.38 of its potential returns per unit of risk. Americafirst Large Cap is currently generating about 0.4 per unit of risk. If you would invest 1,617 in Tiaa Cref Smallmid Cap Equity on September 2, 2024 and sell it today you would earn a total of 168.00 from holding Tiaa Cref Smallmid Cap Equity or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Smallmid Cap Equity vs. Americafirst Large Cap
Performance |
| Timeline |
| Tiaa-cref Small/mid-cap |
| Americafirst Large Cap |
Tiaa-cref Small/mid-cap and Americafirst Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Small/mid-cap and Americafirst Large
The main advantage of trading using opposite Tiaa-cref Small/mid-cap and Americafirst Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Small/mid-cap position performs unexpectedly, Americafirst Large 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 Americafirst Large will offset losses from the drop in Americafirst Large's long position.| Tiaa-cref Small/mid-cap vs. Inflation Protected Bond Fund | Tiaa-cref Small/mid-cap vs. T Rowe Price | Tiaa-cref Small/mid-cap vs. Artisan High Income | Tiaa-cref Small/mid-cap vs. Federated Ohio Municipal |
| Americafirst Large vs. Aig Government Money | Americafirst Large vs. Prudential Government Income | Americafirst Large vs. Blackrock Government Bond | Americafirst Large vs. Short Term Government Fund |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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