Correlation Between Tiaa-cref Inflation-linked and First Eagle

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

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

Diversification Opportunities for Tiaa-cref Inflation-linked and First Eagle

0.77

Correlation Coefficient

Tiaa-cref Inflation-linked  First Eagle

Poor diversification

The 3 months correlation between Tiaa-cref and First is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Inflation Linked Bon and First Eagle Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Small and Tiaa-cref Inflation-linked 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 Inflation Linked Bond are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Small has no effect on the direction of Tiaa-cref Inflation-linked i.e., Tiaa-cref Inflation-linked and First Eagle go up and down completely randomly.

Pair Corralation between Tiaa-cref Inflation-linked and First Eagle

Assuming the 90 days horizon Tiaa-cref Inflation-linked is expected to generate 3.01 times less return on investment than First Eagle. But when comparing it to its historical volatility, Tiaa Cref Inflation Linked Bond is 5.92 times less risky than First Eagle. It trades about 0.24 of its potential returns per unit of risk. First Eagle Small is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  975.00  in First Eagle Small on May 10, 2025 and sell it today you would earn a total of  76.00  from holding First Eagle Small or generate 7.79% return on investment over 90 days.

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

Tiaa Cref Inflation Linked Bon  vs.  First Eagle Small

Tiaa-cref Inflation-linked

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Inflation Linked Bond are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. 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.

First Eagle Small

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Small are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, First Eagle may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Tiaa-cref Inflation-linked and First Eagle

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

The idea behind Tiaa Cref Inflation Linked Bond and First Eagle Small 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.