Correlation Between Tiaa Cref and Astor Long/short

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

By analyzing existing cross correlation between Tiaa Cref Small Cap Equity and Astor Longshort Fund, you can compare the effects of market volatilities on Tiaa Cref and Astor Long/short 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 Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Astor Long/short.

Diversification Opportunities for Tiaa Cref and Astor Long/short

0.94

Correlation Coefficient

Tiaa Cref  Astor Long/short

Almost no diversification

The 3 months correlation between Tiaa and Astor is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Small Cap Equity and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short 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 Small Cap Equity are associated (or correlated) with Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Astor Long/short go up and down completely randomly.

Pair Corralation between Tiaa Cref and Astor Long/short

Assuming the 90 days horizon Tiaa Cref Small Cap Equity is expected to generate 2.82 times more return on investment than Astor Long/short. However, Tiaa Cref is 2.82 times more volatile than Astor Longshort Fund. It trades about 0.1 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.16 per unit of risk. If you would invest  1,682  in Tiaa Cref Small Cap Equity on May 10, 2025 and sell it today you would earn a total of  99.00  from holding Tiaa Cref Small Cap Equity or generate 5.89% 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 Small Cap Equity  vs.  Astor Longshort Fund

Tiaa Cref Small

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Small Cap Equity are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Tiaa Cref is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Astor Long/short

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astor Longshort Fund are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Astor Long/short 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 Astor Long/short

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

The idea behind Tiaa Cref Small Cap Equity and Astor Longshort Fund 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.