Correlation Between Tiaa Cref and Global Social

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

By analyzing existing cross correlation between Tiaa Cref Lifestyle Conservative and Global Social Awareness, you can compare the effects of market volatilities on Tiaa Cref and Global Social 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 Global Social. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Global Social.

Diversification Opportunities for Tiaa Cref and Global Social

0.47

Correlation Coefficient

Tiaa Cref  Global Social

Very weak diversification

The 3 months correlation between Tiaa and Global is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Lifestyle Conservati and Global Social Awareness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Social Awareness 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 Lifestyle Conservative are associated (or correlated) with Global Social. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Social Awareness has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Global Social go up and down completely randomly.

Pair Corralation between Tiaa Cref and Global Social

Assuming the 90 days horizon Tiaa Cref is expected to generate 1.32 times less return on investment than Global Social. But when comparing it to its historical volatility, Tiaa Cref Lifestyle Conservative is 2.43 times less risky than Global Social. It trades about 0.25 of its potential returns per unit of risk. Global Social Awareness is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2,676  in Global Social Awareness on May 17, 2025 and sell it today you would earn a total of  165.00  from holding Global Social Awareness or generate 6.17% return on investment over 90 days.

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

Tiaa Cref Lifestyle Conservati  vs.  Global Social Awareness

Tiaa Cref Lifestyle

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Lifestyle Conservative are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Tiaa Cref is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Global Social Awareness

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Global Social Awareness are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Global Social is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tiaa Cref and Global Social

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

The idea behind Tiaa Cref Lifestyle Conservative and Global Social Awareness 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .