Correlation Between Tiaa Cref and Fiera Capital

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

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

Diversification Opportunities for Tiaa Cref and Fiera Capital

0.92

Correlation Coefficient

Tiaa Cref  Fiera Capital

Almost no diversification

The 3 months correlation between Tiaa and Fiera is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Mid Cap Value and Fiera Capital Smallmid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital Smallmid 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 Mid Cap Value are associated (or correlated) with Fiera Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiera Capital Smallmid has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Fiera Capital go up and down completely randomly.

Pair Corralation between Tiaa Cref and Fiera Capital

Assuming the 90 days horizon Tiaa Cref is expected to generate 1.38 times less return on investment than Fiera Capital. But when comparing it to its historical volatility, Tiaa Cref Mid Cap Value is 1.16 times less risky than Fiera Capital. It trades about 0.12 of its potential returns per unit of risk. Fiera Capital Smallmid Cap is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,509  in Fiera Capital Smallmid Cap on May 4, 2025 and sell it today you would earn a total of  131.00  from holding Fiera Capital Smallmid Cap or generate 8.68% 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 Mid Cap Value  vs.  Fiera Capital Smallmid Cap

Tiaa Cref Mid

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Mid Cap Value are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical indicators, Tiaa Cref may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Fiera Capital Smallmid

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fiera Capital Smallmid Cap are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fiera Capital may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Tiaa Cref and Fiera Capital

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

The idea behind Tiaa Cref Mid Cap Value and Fiera Capital Smallmid 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.