Correlation Between Sprott Gold and Tiaa-cref Lifecycle

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

By analyzing existing cross correlation between Sprott Gold Equity and Tiaa Cref Lifecycle 2050, you can compare the effects of market volatilities on Sprott Gold and Tiaa-cref Lifecycle 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 Sprott Gold with a short position of Tiaa-cref Lifecycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Gold and Tiaa-cref Lifecycle.

Diversification Opportunities for Sprott Gold and Tiaa-cref Lifecycle

0.27

Correlation Coefficient

Sprott Gold  Tiaa-cref Lifecycle

Modest diversification

The 3 months correlation between Sprott and Tiaa-cref is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Gold Equity and Tiaa Cref Lifecycle 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Lifecycle and Sprott Gold 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 Sprott Gold Equity are associated (or correlated) with Tiaa-cref Lifecycle. 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 Lifecycle has no effect on the direction of Sprott Gold i.e., Sprott Gold and Tiaa-cref Lifecycle go up and down completely randomly.

Pair Corralation between Sprott Gold and Tiaa-cref Lifecycle

Assuming the 90 days horizon Sprott Gold Equity is expected to generate 2.39 times more return on investment than Tiaa-cref Lifecycle. However, Sprott Gold is 2.39 times more volatile than Tiaa Cref Lifecycle 2050. It trades about 0.37 of its potential returns per unit of risk. Tiaa Cref Lifecycle 2050 is currently generating about 0.15 per unit of risk. If you would invest  7,591  in Sprott Gold Equity on May 27, 2025 and sell it today you would earn a total of  945.00  from holding Sprott Gold Equity or generate 12.45% return on investment over 90 days.

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

Sprott Gold Equity  vs.  Tiaa Cref Lifecycle 2050

Sprott Gold Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sprott Gold Equity are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly sluggish essential indicators, Sprott Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Tiaa Cref Lifecycle

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Lifecycle 2050 are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Tiaa-cref Lifecycle may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Sprott Gold and Tiaa-cref Lifecycle

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

The idea behind Sprott Gold Equity and Tiaa Cref Lifecycle 2050 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.