Correlation Between Tiaa Cref and First Investors

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

By analyzing existing cross correlation between Tiaa Cref Real Estate and First Investors Growth, you can compare the effects of market volatilities on Tiaa Cref and First Investors 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 First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and First Investors.

Diversification Opportunities for Tiaa Cref and First Investors

0.35

Correlation Coefficient

Tiaa Cref  First Investors

Weak diversification

The 3 months correlation between Tiaa and First is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Real Estate and First Investors Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Growth 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 Real Estate are associated (or correlated) with First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Growth has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and First Investors go up and down completely randomly.

Pair Corralation between Tiaa Cref and First Investors

Assuming the 90 days horizon Tiaa Cref is expected to generate 12.29 times less return on investment than First Investors. In addition to that, Tiaa Cref is 1.22 times more volatile than First Investors Growth. It trades about 0.01 of its total potential returns per unit of risk. First Investors Growth is currently generating about 0.16 per unit of volatility. If you would invest  1,474  in First Investors Growth on May 8, 2025 and sell it today you would earn a total of  105.00  from holding First Investors Growth or generate 7.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Tiaa Cref Real Estate  vs.  First Investors Growth

Tiaa Cref Real

Risk-Adjusted Performance

Weakest

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

First Investors Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in First Investors Growth are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, First Investors may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Tiaa Cref and First Investors

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

The idea behind Tiaa Cref Real Estate and First Investors Growth 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.