Correlation Between Tiaa Cref and Fundamental Large

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

By analyzing existing cross correlation between Tiaa Cref Large Cap Value and Fundamental Large Cap, you can compare the effects of market volatilities on Tiaa Cref and Fundamental Large 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 Fundamental Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Fundamental Large.

Diversification Opportunities for Tiaa Cref and Fundamental Large

0.89

Correlation Coefficient

Tiaa Cref  Fundamental Large

Very poor diversification

The 3 months correlation between Tiaa and FUNDAMENTAL is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Large Cap Value and Fundamental Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Large Cap 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 Large Cap Value are associated (or correlated) with Fundamental Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Large Cap has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Fundamental Large go up and down completely randomly.

Pair Corralation between Tiaa Cref and Fundamental Large

Assuming the 90 days horizon Tiaa Cref Large Cap Value is expected to generate 0.78 times more return on investment than Fundamental Large. However, Tiaa Cref Large Cap Value is 1.28 times less risky than Fundamental Large. It trades about 0.16 of its potential returns per unit of risk. Fundamental Large Cap is currently generating about 0.08 per unit of risk. If you would invest  2,396  in Tiaa Cref Large Cap Value on August 16, 2025 and sell it today you would earn a total of  144.00  from holding Tiaa Cref Large Cap Value or generate 6.01% return on investment over 90 days.

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

Tiaa Cref Large Cap Value  vs.  Fundamental Large Cap

Tiaa Cref Large

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Large Cap Value are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Tiaa Cref is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fundamental Large Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Fundamental Large Cap are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Fundamental Large 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 Fundamental Large

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

The idea behind Tiaa Cref Large Cap Value and Fundamental Large Cap 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.