Correlation Between DXC Technology and Tiaa-cref Growth

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

By analyzing existing cross correlation between DXC Technology Co and Tiaa Cref Growth Income, you can compare the effects of market volatilities on DXC Technology and Tiaa-cref Growth 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 DXC Technology with a short position of Tiaa-cref Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Tiaa-cref Growth.

Diversification Opportunities for DXC Technology and Tiaa-cref Growth

-0.66

Correlation Coefficient

DXC Technology  Tiaa-cref Growth

Excellent diversification

The 3 months correlation between DXC and Tiaa-cref is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and Tiaa Cref Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Growth and DXC Technology 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 DXC Technology Co are associated (or correlated) with Tiaa-cref Growth. 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 Growth has no effect on the direction of DXC Technology i.e., DXC Technology and Tiaa-cref Growth go up and down completely randomly.

Pair Corralation between DXC Technology and Tiaa-cref Growth

Considering the 90-day investment horizon DXC Technology Co is expected to under-perform the Tiaa-cref Growth. In addition to that, DXC Technology is 3.5 times more volatile than Tiaa Cref Growth Income. It trades about -0.15 of its total potential returns per unit of risk. Tiaa Cref Growth Income is currently generating about 0.25 per unit of volatility. If you would invest  1,455  in Tiaa Cref Growth Income on May 13, 2025 and sell it today you would earn a total of  161.00  from holding Tiaa Cref Growth Income or generate 11.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

DXC Technology Co  vs.  Tiaa Cref Growth Income

DXC Technology

Risk-Adjusted Performance

Weakest

Over the last 90 days DXC Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Tiaa Cref Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Growth Income are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Tiaa-cref Growth may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with DXC Technology and Tiaa-cref Growth

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

The idea behind DXC Technology Co and Tiaa Cref Growth Income 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 Stocks Directory module to find actively traded stocks across global markets.