Correlation Between Fidelity International and Tiaa Cref

Can any of the company-specific risk be diversified away by investing in both Fidelity International 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 International 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 International Index and Tiaa Cref International Equity, you can compare the effects of market volatilities on Fidelity International 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 International with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity International and Tiaa Cref.

Diversification Opportunities for Fidelity International and Tiaa Cref

0.81

Correlation Coefficient

Fidelity International  Tiaa Cref

Very poor diversification

The 3 months correlation between Fidelity and Tiaa is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity International Index and Tiaa Cref International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref International and Fidelity International 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 International Index 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 International has no effect on the direction of Fidelity International i.e., Fidelity International and Tiaa Cref go up and down completely randomly.

Pair Corralation between Fidelity International and Tiaa Cref

Assuming the 90 days horizon Fidelity International is expected to generate 1.18 times less return on investment than Tiaa Cref. But when comparing it to its historical volatility, Fidelity International Index is 1.19 times less risky than Tiaa Cref. It trades about 0.07 of its potential returns per unit of risk. Tiaa Cref International Equity is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,531  in Tiaa Cref International Equity on May 4, 2025 and sell it today you would earn a total of  56.00  from holding Tiaa Cref International Equity or generate 3.66% return on investment over 90 days.

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

Fidelity International Index  vs.  Tiaa Cref International Equity

Fidelity International

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity International Index 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 International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tiaa Cref International

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref International Equity are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic 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 Fidelity International and Tiaa Cref

The main advantage of trading using opposite Fidelity International and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity International 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 International Index and Tiaa Cref International Equity 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.