Correlation Between Tiaa Cref and Bridgewater Bancshares
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and Bridgewater Bancshares 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 Bridgewater Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Sp 500 and Bridgewater Bancshares, you can compare the effects of market volatilities on Tiaa Cref and Bridgewater Bancshares 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 Bridgewater Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Bridgewater Bancshares.
Diversification Opportunities for Tiaa Cref and Bridgewater Bancshares
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tiaa and Bridgewater is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Sp 500 and Bridgewater Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgewater Bancshares 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 Sp 500 are associated (or correlated) with Bridgewater Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgewater Bancshares has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Bridgewater Bancshares go up and down completely randomly.
Pair Corralation between Tiaa Cref and Bridgewater Bancshares
Assuming the 90 days horizon Tiaa Cref Sp 500 is expected to under-perform the Bridgewater Bancshares. But the mutual fund apears to be less risky and, when comparing its historical volatility, Tiaa Cref Sp 500 is 2.41 times less risky than Bridgewater Bancshares. The mutual fund trades about -0.28 of its potential returns per unit of risk. The Bridgewater Bancshares is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,163 in Bridgewater Bancshares on January 20, 2024 and sell it today you would lose (30.00) from holding Bridgewater Bancshares or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Sp 500 vs. Bridgewater Bancshares
Performance |
| Timeline |
| Tiaa Cref Sp |
| Bridgewater Bancshares |
Tiaa Cref and Bridgewater Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and Bridgewater Bancshares
The main advantage of trading using opposite Tiaa Cref and Bridgewater Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref position performs unexpectedly, Bridgewater Bancshares 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 Bridgewater Bancshares will offset losses from the drop in Bridgewater Bancshares' long position.| Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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