Correlation Between Smallcap Fund and Tiaa-cref Intl

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

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

Diversification Opportunities for Smallcap Fund and Tiaa-cref Intl

0.65

Correlation Coefficient

Smallcap Fund  Tiaa-cref Intl

Poor diversification

The 3 months correlation between Smallcap and Tiaa-cref is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Smallcap Fund Fka and Tiaa Cref Intl Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Intl and Smallcap Fund 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 Smallcap Fund Fka are associated (or correlated) with Tiaa-cref Intl. 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 Intl has no effect on the direction of Smallcap Fund i.e., Smallcap Fund and Tiaa-cref Intl go up and down completely randomly.

Pair Corralation between Smallcap Fund and Tiaa-cref Intl

Assuming the 90 days horizon Smallcap Fund Fka is expected to generate 10.86 times more return on investment than Tiaa-cref Intl. However, Smallcap Fund is 10.86 times more volatile than Tiaa Cref Intl Bond. It trades about 0.03 of its potential returns per unit of risk. Tiaa Cref Intl Bond is currently generating about 0.35 per unit of risk. If you would invest  2,818  in Smallcap Fund Fka on July 25, 2025 and sell it today you would earn a total of  22.00  from holding Smallcap Fund Fka or generate 0.78% return on investment over 90 days.

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

Smallcap Fund Fka  vs.  Tiaa Cref Intl Bond

Smallcap Fund Fka

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Smallcap Fund Fka are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Smallcap Fund may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Tiaa Cref Intl

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Intl Bond are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Tiaa-cref Intl is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Smallcap Fund and Tiaa-cref Intl

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

The idea behind Smallcap Fund Fka and Tiaa Cref Intl Bond 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..