Correlation Between Tiaa-cref Lifecycle and Optimum Fixed

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

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

Diversification Opportunities for Tiaa-cref Lifecycle and Optimum Fixed

0.0

Correlation Coefficient

Tiaa-cref Lifecycle  Optimum Fixed

Pay attention - limited upside

The 3 months correlation between Tiaa-cref and Optimum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Lifecycle Retirement and Optimum Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optimum Fixed Income and Tiaa-cref Lifecycle 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 Lifecycle Retirement are associated (or correlated) with Optimum Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optimum Fixed Income has no effect on the direction of Tiaa-cref Lifecycle i.e., Tiaa-cref Lifecycle and Optimum Fixed go up and down completely randomly.

Pair Corralation between Tiaa-cref Lifecycle and Optimum Fixed

If you would invest  1,135  in Tiaa Cref Lifecycle Retirement on May 17, 2025 and sell it today you would earn a total of  49.00  from holding Tiaa Cref Lifecycle Retirement or generate 4.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Tiaa Cref Lifecycle Retirement  vs.  Optimum Fixed Income

Tiaa Cref Lifecycle

Risk-Adjusted Performance

Solid

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

Optimum Fixed Income

Risk-Adjusted Performance

Good

Over the last 90 days Optimum Fixed Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Optimum Fixed 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 Lifecycle and Optimum Fixed

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

The idea behind Tiaa Cref Lifecycle Retirement and Optimum Fixed Income 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.