Correlation Between Tiaa-cref Green and Tiaa-cref Managed

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

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

Diversification Opportunities for Tiaa-cref Green and Tiaa-cref Managed

0.84

Correlation Coefficient

Tiaa-cref Green  Tiaa-cref Managed

Very poor diversification

The 3 months correlation between Tiaa-cref and Tiaa-cref is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Green Bond and Tiaa Cref Managed Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Managed and Tiaa-cref Green 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 Green Bond are associated (or correlated) with Tiaa-cref Managed. 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 Managed has no effect on the direction of Tiaa-cref Green i.e., Tiaa-cref Green and Tiaa-cref Managed go up and down completely randomly.

Pair Corralation between Tiaa-cref Green and Tiaa-cref Managed

Assuming the 90 days horizon Tiaa-cref Green is expected to generate 5.63 times less return on investment than Tiaa-cref Managed. But when comparing it to its historical volatility, Tiaa Cref Green Bond is 1.99 times less risky than Tiaa-cref Managed. It trades about 0.12 of its potential returns per unit of risk. Tiaa Cref Managed Allocation is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest  1,216  in Tiaa Cref Managed Allocation on April 25, 2025 and sell it today you would earn a total of  111.00  from holding Tiaa Cref Managed Allocation or generate 9.13% return on investment over 90 days.

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

Tiaa Cref Green Bond  vs.  Tiaa Cref Managed Allocation

Tiaa Cref Green

Risk-Adjusted Performance

Good

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

Tiaa Cref Managed

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Managed Allocation are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Tiaa-cref Managed may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Tiaa-cref Green and Tiaa-cref Managed

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

The idea behind Tiaa Cref Green Bond and Tiaa Cref Managed Allocation 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.