Correlation Between Calvert Emerging and Tiaa Cref

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

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

Diversification Opportunities for Calvert Emerging and Tiaa Cref

0.06

Correlation Coefficient

Calvert Emerging  Tiaa Cref

Significant diversification

The 3 months correlation between Calvert and Tiaa is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Emerging Markets and Tiaa Cref Lifestyle Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Lifestyle and Calvert Emerging 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 Calvert Emerging Markets 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 Lifestyle has no effect on the direction of Calvert Emerging i.e., Calvert Emerging and Tiaa Cref go up and down completely randomly.

Pair Corralation between Calvert Emerging and Tiaa Cref

Assuming the 90 days horizon Calvert Emerging is expected to generate 2.75 times less return on investment than Tiaa Cref. In addition to that, Calvert Emerging is 1.96 times more volatile than Tiaa Cref Lifestyle Moderate. It trades about 0.05 of its total potential returns per unit of risk. Tiaa Cref Lifestyle Moderate is currently generating about 0.28 per unit of volatility. If you would invest  1,489  in Tiaa Cref Lifestyle Moderate on May 21, 2025 and sell it today you would earn a total of  103.00  from holding Tiaa Cref Lifestyle Moderate or generate 6.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Calvert Emerging Markets  vs.  Tiaa Cref Lifestyle Moderate

Calvert Emerging Markets

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Emerging Markets are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Calvert Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tiaa Cref Lifestyle

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Lifestyle Moderate are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Tiaa Cref may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Calvert Emerging and Tiaa Cref

The main advantage of trading using opposite Calvert Emerging and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Emerging 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 Calvert Emerging Markets and Tiaa Cref Lifestyle Moderate 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.

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.