Correlation Between Royce Premier and Tiaa-cref Inflation-linked

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

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

Diversification Opportunities for Royce Premier and Tiaa-cref Inflation-linked

0.41

Correlation Coefficient

Royce Premier  Tiaa-cref Inflation-linked

Very weak diversification

The 3 months correlation between Royce and Tiaa-cref is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Royce Premier Fund and Tiaa Cref Inflation Linked Bon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Inflation-linked and Royce Premier 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 Royce Premier Fund are associated (or correlated) with Tiaa-cref Inflation-linked. 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 Inflation-linked has no effect on the direction of Royce Premier i.e., Royce Premier and Tiaa-cref Inflation-linked go up and down completely randomly.

Pair Corralation between Royce Premier and Tiaa-cref Inflation-linked

Assuming the 90 days horizon Royce Premier Fund is expected to under-perform the Tiaa-cref Inflation-linked. In addition to that, Royce Premier is 11.46 times more volatile than Tiaa Cref Inflation Linked Bond. It trades about -0.07 of its total potential returns per unit of risk. Tiaa Cref Inflation Linked Bond is currently generating about -0.03 per unit of volatility. If you would invest  1,056  in Tiaa Cref Inflation Linked Bond on September 13, 2025 and sell it today you would lose (3.00) from holding Tiaa Cref Inflation Linked Bond or give up 0.28% of portfolio value over 90 days.

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

Royce Premier Fund  vs.  Tiaa Cref Inflation Linked Bon

Royce Premier

Risk-Adjusted Performance

Weakest

Over the last 90 days Royce Premier Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Tiaa-cref Inflation-linked

Risk-Adjusted Performance

Weakest

Over the last 90 days Tiaa Cref Inflation Linked Bond has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, Tiaa-cref Inflation-linked is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Royce Premier and Tiaa-cref Inflation-linked

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

The idea behind Royce Premier Fund and Tiaa Cref Inflation Linked 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.

Check out your portfolio center.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.