Correlation Between Nasdaq 100 and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Tiaa Cref 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 Nasdaq 100 and Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Index Fund and Tiaa Cref Lifecycle 2055, you can compare the effects of market volatilities on Nasdaq 100 and Tiaa Cref 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 Nasdaq 100 with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Tiaa Cref.
Diversification Opportunities for Nasdaq 100 and Tiaa Cref
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nasdaq and Tiaa is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and Tiaa Cref Lifecycle 2055 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Lifecycle and Nasdaq 100 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 Nasdaq 100 Index Fund are associated (or correlated) with Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Lifecycle has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Tiaa Cref go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Tiaa Cref
Assuming the 90 days horizon Nasdaq 100 Index Fund is expected to generate 1.49 times more return on investment than Tiaa Cref. However, Nasdaq 100 is 1.49 times more volatile than Tiaa Cref Lifecycle 2055. It trades about 0.1 of its potential returns per unit of risk. Tiaa Cref Lifecycle 2055 is currently generating about 0.08 per unit of risk. If you would invest 4,192 in Nasdaq 100 Index Fund on September 16, 2024 and sell it today you would earn a total of 1,244 from holding Nasdaq 100 Index Fund or generate 29.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. Tiaa Cref Lifecycle 2055
Performance |
| Timeline |
| Nasdaq 100 Index |
| Tiaa Cref Lifecycle |
Nasdaq 100 and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Tiaa Cref
The main advantage of trading using opposite Nasdaq 100 and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Nasdaq 100 vs. Lord Abbett Small | Nasdaq 100 vs. Valic Company I | Nasdaq 100 vs. American Century Etf | Nasdaq 100 vs. Amg River Road |
| Tiaa Cref vs. Nasdaq 100 Index Fund | Tiaa Cref vs. Shelton Funds | Tiaa Cref vs. Rbc Funds Trust | Tiaa Cref vs. Semiconductor Ultrasector Profund |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |