Correlation Between Tiaa-cref Funds and Federated Mortgage

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

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

Diversification Opportunities for Tiaa-cref Funds and Federated Mortgage

0.0

Correlation Coefficient

Tiaa-cref Funds  Federated Mortgage

Pay attention - limited upside

The 3 months correlation between Tiaa-cref and FEDERATED is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Funds and Federated Mortgage Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Mortgage and Tiaa-cref Funds 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 Funds are associated (or correlated) with Federated Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Mortgage has no effect on the direction of Tiaa-cref Funds i.e., Tiaa-cref Funds and Federated Mortgage go up and down completely randomly.

Pair Corralation between Tiaa-cref Funds and Federated Mortgage

If you would invest  803.00  in Federated Mortgage Fund on May 16, 2025 and sell it today you would earn a total of  20.00  from holding Federated Mortgage Fund or generate 2.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Tiaa Cref Funds   vs.  Federated Mortgage Fund

Tiaa Cref Funds

Risk-Adjusted Performance

Weakest

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

Federated Mortgage

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Federated Mortgage Fund are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Federated Mortgage is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tiaa-cref Funds and Federated Mortgage

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

The idea behind Tiaa Cref Funds and Federated Mortgage Fund 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.