Correlation Between Tfa Alphagen and Tiaa Cref

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

By analyzing existing cross correlation between Tfa Alphagen Growth and Tiaa Cref Social Choice, you can compare the effects of market volatilities on Tfa Alphagen and Tiaa Cref 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 Tfa Alphagen with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tfa Alphagen and Tiaa Cref.

Diversification Opportunities for Tfa Alphagen and Tiaa Cref

0.99

Correlation Coefficient

Tfa Alphagen  Tiaa Cref

No risk reduction

The 3 months correlation between Tfa and Tiaa is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth and Tiaa Cref Social Choice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Social and Tfa Alphagen 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 Tfa Alphagen Growth are associated (or correlated) with Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Social has no effect on the direction of Tfa Alphagen i.e., Tfa Alphagen and Tiaa Cref go up and down completely randomly.

Pair Corralation between Tfa Alphagen and Tiaa Cref

Assuming the 90 days horizon Tfa Alphagen Growth is expected to generate 1.06 times more return on investment than Tiaa Cref. However, Tfa Alphagen is 1.06 times more volatile than Tiaa Cref Social Choice. It trades about 0.29 of its potential returns per unit of risk. Tiaa Cref Social Choice is currently generating about 0.27 per unit of risk. If you would invest  1,042  in Tfa Alphagen Growth on May 3, 2025 and sell it today you would earn a total of  152.00  from holding Tfa Alphagen Growth or generate 14.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.36%
Values	Daily Returns

Tfa Alphagen Growth  vs.  Tiaa Cref Social Choice

Tfa Alphagen Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tfa Alphagen Growth are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Tfa Alphagen showed solid returns over the last few months and may actually be approaching a breakup point.

Tiaa Cref Social

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Social Choice are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Tiaa Cref may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Tfa Alphagen and Tiaa Cref

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

The idea behind Tfa Alphagen Growth and Tiaa Cref Social Choice 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.