Correlation Between Tiaa-cref Managed and Tiaa-cref

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

By analyzing existing cross correlation between Tiaa Cref Managed Allocation and Tiaa Cref Sp 500, you can compare the effects of market volatilities on Tiaa-cref Managed 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 Tiaa-cref Managed with a short position of Tiaa-cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Managed and Tiaa-cref.

Diversification Opportunities for Tiaa-cref Managed and Tiaa-cref

0.99

Correlation Coefficient

Tiaa-cref Managed  Tiaa-cref

No risk reduction

The 3 months correlation between Tiaa-cref and Tiaa-cref is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Managed Allocation and Tiaa Cref Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Sp and Tiaa-cref Managed 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 Managed Allocation 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 Sp has no effect on the direction of Tiaa-cref Managed i.e., Tiaa-cref Managed and Tiaa-cref go up and down completely randomly.

Pair Corralation between Tiaa-cref Managed and Tiaa-cref

Assuming the 90 days horizon Tiaa-cref Managed is expected to generate 1.47 times less return on investment than Tiaa-cref. But when comparing it to its historical volatility, Tiaa Cref Managed Allocation is 1.52 times less risky than Tiaa-cref. It trades about 0.26 of its potential returns per unit of risk. Tiaa Cref Sp 500 is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  6,451  in Tiaa Cref Sp 500 on May 28, 2025 and sell it today you would earn a total of  623.00  from holding Tiaa Cref Sp 500 or generate 9.66% return on investment over 90 days.

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

Tiaa Cref Managed Allocation  vs.  Tiaa Cref Sp 500

Tiaa Cref Managed

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Managed Allocation are ranked lower than 20 (%) 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 September 2025.

Tiaa Cref Sp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Sp 500 are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Tiaa-cref may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Tiaa-cref Managed and Tiaa-cref

The main advantage of trading using opposite Tiaa-cref Managed and Tiaa-cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Managed 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 Tiaa Cref Managed Allocation and Tiaa Cref Sp 500 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.

Check out your portfolio center.

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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.