Correlation Between Tiaa-cref International and Washington Mutual

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

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

Diversification Opportunities for Tiaa-cref International and Washington Mutual

0.94

Correlation Coefficient

Tiaa-cref International  Washington Mutual

Almost no diversification

The 3 months correlation between Tiaa-cref and Washington is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref International Equity and Washington Mutual Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Washington Mutual and Tiaa-cref International 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 Tiaa Cref International Equity are associated (or correlated) with Washington Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Washington Mutual has no effect on the direction of Tiaa-cref International i.e., Tiaa-cref International and Washington Mutual go up and down completely randomly.

Pair Corralation between Tiaa-cref International and Washington Mutual

Assuming the 90 days horizon Tiaa-cref International is expected to generate 1.21 times less return on investment than Washington Mutual. In addition to that, Tiaa-cref International is 1.19 times more volatile than Washington Mutual Investors. It trades about 0.23 of its total potential returns per unit of risk. Washington Mutual Investors is currently generating about 0.33 per unit of volatility. If you would invest  5,732  in Washington Mutual Investors on April 24, 2025 and sell it today you would earn a total of  780.00  from holding Washington Mutual Investors or generate 13.61% return on investment over 90 days.

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

Tiaa Cref International Equity  vs.  Washington Mutual Investors

Tiaa Cref International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref International Equity are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Tiaa-cref International may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Washington Mutual

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Washington Mutual Investors are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Washington Mutual showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tiaa-cref International and Washington Mutual

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

The idea behind Tiaa Cref International Equity and Washington Mutual Investors 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.