Correlation Between Fidelity Small and Tiaa Cref

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

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

Diversification Opportunities for Fidelity Small and Tiaa Cref

0.84

Correlation Coefficient

Fidelity Small  Tiaa Cref

Very poor diversification

The 3 months correlation between Fidelity and Tiaa is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Small Cap and Tiaa Cref Mid Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Mid and Fidelity Small 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 Fidelity Small Cap 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 Mid has no effect on the direction of Fidelity Small i.e., Fidelity Small and Tiaa Cref go up and down completely randomly.

Pair Corralation between Fidelity Small and Tiaa Cref

Assuming the 90 days horizon Fidelity Small is expected to generate 2.42 times less return on investment than Tiaa Cref. In addition to that, Fidelity Small is 1.21 times more volatile than Tiaa Cref Mid Cap Growth. It trades about 0.07 of its total potential returns per unit of risk. Tiaa Cref Mid Cap Growth is currently generating about 0.21 per unit of volatility. If you would invest  1,937  in Tiaa Cref Mid Cap Growth on May 4, 2025 and sell it today you would earn a total of  263.00  from holding Tiaa Cref Mid Cap Growth or generate 13.58% return on investment over 90 days.

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

Fidelity Small Cap  vs.  Tiaa Cref Mid Cap Growth

Fidelity Small Cap

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Small Cap are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Fidelity Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tiaa Cref Mid

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Mid Cap Growth are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Tiaa Cref showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fidelity Small and Tiaa Cref

The main advantage of trading using opposite Fidelity Small and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Small 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 Fidelity Small Cap and Tiaa Cref Mid Cap Growth 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.