Correlation Between Tiaa Cref and Diversified Healthcare

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

By analyzing existing cross correlation between Tiaa Cref Real Estate and Diversified Healthcare Trust, you can compare the effects of market volatilities on Tiaa Cref and Diversified Healthcare 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 with a short position of Diversified Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Diversified Healthcare.

Diversification Opportunities for Tiaa Cref and Diversified Healthcare

-0.13

Correlation Coefficient

Tiaa Cref  Diversified Healthcare

Good diversification

The 3 months correlation between Tiaa and Diversified is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Real Estate and Diversified Healthcare Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diversified Healthcare and Tiaa Cref 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 Real Estate are associated (or correlated) with Diversified Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diversified Healthcare has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Diversified Healthcare go up and down completely randomly.

Pair Corralation between Tiaa Cref and Diversified Healthcare

Assuming the 90 days horizon Tiaa Cref Real Estate is expected to under-perform the Diversified Healthcare. But the mutual fund apears to be less risky and, when comparing its historical volatility, Tiaa Cref Real Estate is 4.13 times less risky than Diversified Healthcare. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Diversified Healthcare Trust is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  461.00  in Diversified Healthcare Trust on September 16, 2025 and sell it today you would earn a total of  34.00  from holding Diversified Healthcare Trust or generate 7.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

Tiaa Cref Real Estate  vs.  Diversified Healthcare Trust

Tiaa Cref Real

Risk-Adjusted Performance

Weakest

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

Diversified Healthcare

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Diversified Healthcare Trust are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical indicators, Diversified Healthcare exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tiaa Cref and Diversified Healthcare

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

The idea behind Tiaa Cref Real Estate and Diversified Healthcare Trust 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 CEOs Directory module to screen CEOs from public companies around the world.