Correlation Between Tiaa-cref Lifecycle and Aim Investment

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

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

Diversification Opportunities for Tiaa-cref Lifecycle and Aim Investment

-0.28

Correlation Coefficient

Tiaa-cref Lifecycle  Aim Investment

Very good diversification

The 3 months correlation between Tiaa-cref and Aim is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Lifecycle 2050 and Aim Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Securities and Tiaa-cref Lifecycle 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 Lifecycle 2050 are associated (or correlated) with Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Securities has no effect on the direction of Tiaa-cref Lifecycle i.e., Tiaa-cref Lifecycle and Aim Investment go up and down completely randomly.

Pair Corralation between Tiaa-cref Lifecycle and Aim Investment

If you would invest  1,455  in Tiaa Cref Lifecycle 2050 on May 2, 2025 and sell it today you would earn a total of  134.00  from holding Tiaa Cref Lifecycle 2050 or generate 9.21% return on investment over 90 days.

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

Tiaa Cref Lifecycle 2050  vs.  Aim Investment Securities

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 19 (%) 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 August 2025.

Aim Investment Securities

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aim Investment Securities has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Aim Investment 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 Lifecycle and Aim Investment

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

The idea behind Tiaa Cref Lifecycle 2050 and Aim Investment Securities 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.