Correlation Between Agree Realty and Tiaa Cref

Can any of the company-specific risk be diversified away by investing in both Agree Realty 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 Agree Realty and Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Agree Realty and Tiaa Cref Real Estate, you can compare the effects of market volatilities on Agree Realty 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 Agree Realty with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and Tiaa Cref.

Diversification Opportunities for Agree Realty and Tiaa Cref

-0.26

Correlation Coefficient

Agree Realty  Tiaa Cref

Very good diversification

The 3 months correlation between Agree and Tiaa is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and Tiaa Cref Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Real and Agree Realty 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 Agree Realty 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 Real has no effect on the direction of Agree Realty i.e., Agree Realty and Tiaa Cref go up and down completely randomly.

Pair Corralation between Agree Realty and Tiaa Cref

Considering the 90-day investment horizon Agree Realty is expected to under-perform the Tiaa Cref. In addition to that, Agree Realty is 1.2 times more volatile than Tiaa Cref Real Estate. It trades about -0.08 of its total potential returns per unit of risk. Tiaa Cref Real Estate is currently generating about 0.04 per unit of volatility. If you would invest  1,768  in Tiaa Cref Real Estate on May 2, 2025 and sell it today you would earn a total of  30.00  from holding Tiaa Cref Real Estate or generate 1.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Agree Realty  vs.  Tiaa Cref Real Estate

Agree Realty

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agree Realty has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Agree Realty is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Tiaa Cref Real

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Real Estate are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Tiaa Cref is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Agree Realty and Tiaa Cref

The main advantage of trading using opposite Agree Realty and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty 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.

The idea behind Agree Realty and Tiaa Cref Real Estate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.