Correlation Between Foundry Partners and Tiaa-cref Mid-cap

Can any of the company-specific risk be diversified away by investing in both Foundry Partners and Tiaa-cref Mid-cap 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 Foundry Partners and Tiaa-cref Mid-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Foundry Partners Fundamental and Tiaa Cref Mid Cap Value, you can compare the effects of market volatilities on Foundry Partners and Tiaa-cref Mid-cap 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 Foundry Partners with a short position of Tiaa-cref Mid-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foundry Partners and Tiaa-cref Mid-cap.

Diversification Opportunities for Foundry Partners and Tiaa-cref Mid-cap

0.98

Correlation Coefficient

Foundry Partners  Tiaa-cref Mid-cap

Almost no diversification

The 3 months correlation between Foundry and Tiaa-cref is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Foundry Partners Fundamental and Tiaa Cref Mid Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Mid-cap and Foundry Partners 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 Foundry Partners Fundamental are associated (or correlated) with Tiaa-cref Mid-cap. 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 Mid-cap has no effect on the direction of Foundry Partners i.e., Foundry Partners and Tiaa-cref Mid-cap go up and down completely randomly.

Pair Corralation between Foundry Partners and Tiaa-cref Mid-cap

Assuming the 90 days horizon Foundry Partners Fundamental is expected to under-perform the Tiaa-cref Mid-cap. In addition to that, Foundry Partners is 1.32 times more volatile than Tiaa Cref Mid Cap Value. It trades about -0.07 of its total potential returns per unit of risk. Tiaa Cref Mid Cap Value is currently generating about -0.07 per unit of volatility. If you would invest  1,725  in Tiaa Cref Mid Cap Value on January 26, 2025 and sell it today you would lose (68.00) from holding Tiaa Cref Mid Cap Value or give up 3.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Foundry Partners Fundamental  vs.  Tiaa Cref Mid Cap Value

Foundry Partners Fun

Risk-Adjusted Performance

Very Weak

Over the last 90 days Foundry Partners Fundamental has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest fragile performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Tiaa-cref Mid-cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tiaa Cref Mid Cap Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Foundry Partners and Tiaa-cref Mid-cap

The main advantage of trading using opposite Foundry Partners and Tiaa-cref Mid-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foundry Partners position performs unexpectedly, Tiaa-cref Mid-cap 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 Mid-cap will offset losses from the drop in Tiaa-cref Mid-cap's long position.

The idea behind Foundry Partners Fundamental and Tiaa Cref Mid Cap Value 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.