Correlation Between Tiaa Cref and Timothy Largemid

Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and Timothy Largemid 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 Timothy Largemid 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 Timothy Largemid Cap Value, you can compare the effects of market volatilities on Tiaa Cref and Timothy Largemid 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 Timothy Largemid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Timothy Largemid.

Diversification Opportunities for Tiaa Cref and Timothy Largemid

0.96

Correlation Coefficient

Tiaa Cref  Timothy Largemid

Almost no diversification

The 3 months correlation between Tiaa and Timothy is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Large Cap Value and Timothy Largemid Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Largemid 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 Timothy Largemid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Largemid Cap has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Timothy Largemid go up and down completely randomly.

Pair Corralation between Tiaa Cref and Timothy Largemid

Assuming the 90 days horizon Tiaa Cref is expected to generate 1.02 times less return on investment than Timothy Largemid. But when comparing it to its historical volatility, Tiaa Cref Large Cap Value is 1.07 times less risky than Timothy Largemid. It trades about 0.18 of its potential returns per unit of risk. Timothy Largemid Cap Value is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  2,270  in Timothy Largemid Cap Value on May 2, 2025 and sell it today you would earn a total of  172.00  from holding Timothy Largemid Cap Value or generate 7.58% return on investment over 90 days.

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

Tiaa Cref Large Cap Value  vs.  Timothy Largemid Cap Value

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 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Tiaa Cref may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Timothy Largemid Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Timothy Largemid Cap Value are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Timothy Largemid may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Tiaa Cref and Timothy Largemid

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

The idea behind Tiaa Cref Large Cap Value and Timothy Largemid Cap Value 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..