Correlation Between Tiaa-cref Intl and International Small

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

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

Diversification Opportunities for Tiaa-cref Intl and International Small

0.99

Correlation Coefficient

Tiaa-cref Intl  International Small

No risk reduction

The 3 months correlation between Tiaa-cref and INTERNATIONAL is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Intl Small Cap and International Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Small Pany and Tiaa-cref Intl 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 Intl Small Cap are associated (or correlated) with International Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Small Pany has no effect on the direction of Tiaa-cref Intl i.e., Tiaa-cref Intl and International Small go up and down completely randomly.

Pair Corralation between Tiaa-cref Intl and International Small

Assuming the 90 days horizon Tiaa Cref Intl Small Cap is expected to generate 0.96 times more return on investment than International Small. However, Tiaa Cref Intl Small Cap is 1.04 times less risky than International Small. It trades about 0.3 of its potential returns per unit of risk. International Small Pany is currently generating about 0.24 per unit of risk. If you would invest  1,217  in Tiaa Cref Intl Small Cap on May 21, 2025 and sell it today you would earn a total of  151.00  from holding Tiaa Cref Intl Small Cap or generate 12.41% 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 Intl Small Cap  vs.  International Small Pany

Tiaa Cref Intl

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Intl Small Cap are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Tiaa-cref Intl may actually be approaching a critical reversion point that can send shares even higher in September 2025.

International Small Pany

Risk-Adjusted Performance

Solid

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

Pair Trading with Tiaa-cref Intl and International Small

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

The idea behind Tiaa Cref Intl Small Cap and International Small Pany 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.