Correlation Between Growth Allocation and Tiaa Cref

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

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

Diversification Opportunities for Growth Allocation and Tiaa Cref

0.99

Correlation Coefficient

Growth Allocation  Tiaa Cref

No risk reduction

The 3 months correlation between Growth and Tiaa is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Growth Allocation Fund and Tiaa Cref Managed Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Managed and Growth Allocation 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 Growth Allocation Fund 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 Managed has no effect on the direction of Growth Allocation i.e., Growth Allocation and Tiaa Cref go up and down completely randomly.

Pair Corralation between Growth Allocation and Tiaa Cref

Assuming the 90 days horizon Growth Allocation is expected to generate 1.02 times less return on investment than Tiaa Cref. In addition to that, Growth Allocation is 1.19 times more volatile than Tiaa Cref Managed Allocation. It trades about 0.15 of its total potential returns per unit of risk. Tiaa Cref Managed Allocation is currently generating about 0.18 per unit of volatility. If you would invest  1,307  in Tiaa Cref Managed Allocation on July 17, 2025 and sell it today you would earn a total of  63.00  from holding Tiaa Cref Managed Allocation or generate 4.82% return on investment over 90 days.

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

Growth Allocation Fund  vs.  Tiaa Cref Managed Allocation

Growth Allocation

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Growth Allocation Fund are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Growth Allocation is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tiaa Cref Managed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Managed Allocation are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward 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 Growth Allocation and Tiaa Cref

The main advantage of trading using opposite Growth Allocation and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Allocation 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 Growth Allocation Fund and Tiaa Cref Managed Allocation 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.