Correlation Between Siit High and Tiaa Cref

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

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

Diversification Opportunities for Siit High and Tiaa Cref

0.85

Correlation Coefficient

Siit High  Tiaa Cref

Very poor diversification

The 3 months correlation between Siit and Tiaa is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield 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 Siit High 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 Siit High Yield 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 Lifecycle has no effect on the direction of Siit High i.e., Siit High and Tiaa Cref go up and down completely randomly.

Pair Corralation between Siit High and Tiaa Cref

Assuming the 90 days horizon Siit High Yield is expected to under-perform the Tiaa Cref. But the mutual fund apears to be less risky and, when comparing its historical volatility, Siit High Yield is 4.37 times less risky than Tiaa Cref. The mutual fund trades about -0.23 of its potential returns per unit of risk. The Tiaa Cref Lifecycle 2050 is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  1,700  in Tiaa Cref Lifecycle 2050 on August 7, 2025 and sell it today you would lose (2.00) from holding Tiaa Cref Lifecycle 2050 or give up 0.12% of portfolio value over 90 days.

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

Siit High Yield  vs.  Tiaa Cref Lifecycle 2050

Siit High Yield

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Siit High Yield are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Siit High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tiaa Cref Lifecycle

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Lifecycle 2050 are ranked lower than 11 (%) 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 Siit High and Tiaa Cref

The main advantage of trading using opposite Siit High and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High 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 Siit High Yield 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.