Correlation Between Tiaa Cref and Tiaa-cref Large-cap

Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and Tiaa-cref Large-cap 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 Tiaa-cref Large-cap 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 Tiaa Cref Large Cap Value, you can compare the effects of market volatilities on Tiaa Cref and Tiaa-cref Large-cap 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 Tiaa-cref Large-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Tiaa-cref Large-cap.

Diversification Opportunities for Tiaa Cref and Tiaa-cref Large-cap

0.66

Correlation Coefficient

Tiaa Cref  Tiaa-cref Large-cap

Poor diversification

The 3 months correlation between Tiaa and Tiaa-cref is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Bond Fund and Tiaa Cref Large Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Large-cap 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 Bond Fund are associated (or correlated) with Tiaa-cref Large-cap. 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 Large-cap has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Tiaa-cref Large-cap go up and down completely randomly.

Pair Corralation between Tiaa Cref and Tiaa-cref Large-cap

Assuming the 90 days horizon Tiaa Cref is expected to generate 13.3 times less return on investment than Tiaa-cref Large-cap. But when comparing it to its historical volatility, Tiaa Cref Bond Fund is 2.38 times less risky than Tiaa-cref Large-cap. It trades about 0.05 of its potential returns per unit of risk. Tiaa Cref Large Cap Value is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  2,035  in Tiaa Cref Large Cap Value on April 26, 2025 and sell it today you would earn a total of  223.00  from holding Tiaa Cref Large Cap Value or generate 10.96% return on investment over 90 days.

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

Tiaa Cref Bond Fund  vs.  Tiaa Cref Large Cap Value

Tiaa Cref Bond

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Bond Fund are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Tiaa Cref is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tiaa-cref Large-cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Large Cap Value are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Tiaa-cref Large-cap may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Tiaa Cref and Tiaa-cref Large-cap

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

The idea behind Tiaa Cref Bond Fund and Tiaa Cref Large Cap Value 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.