Correlation Between Tiaa-cref Bond and Vipshop Holdings

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

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

Diversification Opportunities for Tiaa-cref Bond and Vipshop Holdings

0.42

Correlation Coefficient

Tiaa-cref Bond  Vipshop Holdings

Very weak diversification

The 3 months correlation between Tiaa-cref and Vipshop is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Bond Fund and Vipshop Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vipshop Holdings and Tiaa-cref Bond 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 Bond Fund are associated (or correlated) with Vipshop Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vipshop Holdings has no effect on the direction of Tiaa-cref Bond i.e., Tiaa-cref Bond and Vipshop Holdings go up and down completely randomly.

Pair Corralation between Tiaa-cref Bond and Vipshop Holdings

Assuming the 90 days horizon Tiaa-cref Bond is expected to generate 1.29 times less return on investment than Vipshop Holdings. But when comparing it to its historical volatility, Tiaa Cref Bond Fund is 7.73 times less risky than Vipshop Holdings. It trades about 0.05 of its potential returns per unit of risk. Vipshop Holdings Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,602  in Vipshop Holdings Limited on March 11, 2025 and sell it today you would lose (139.00) from holding Vipshop Holdings Limited or give up 8.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Tiaa Cref Bond Fund  vs.  Vipshop Holdings Limited

Tiaa Cref Bond

Risk-Adjusted Performance

Very Weak

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

Vipshop Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vipshop Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Vipshop Holdings is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Tiaa-cref Bond and Vipshop Holdings

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

The idea behind Tiaa Cref Bond Fund and Vipshop Holdings Limited 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.