Correlation Between Tiaa Cref and Strategic Allocation

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

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

Diversification Opportunities for Tiaa Cref and Strategic Allocation

1.0

Correlation Coefficient

Tiaa Cref  Strategic Allocation

No risk reduction

The 3 months correlation between Tiaa and Strategic is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Lifestyle Moderate and Strategic Allocation Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Allocation 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 Lifestyle Moderate are associated (or correlated) with Strategic Allocation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Allocation has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Strategic Allocation go up and down completely randomly.

Pair Corralation between Tiaa Cref and Strategic Allocation

Assuming the 90 days horizon Tiaa Cref Lifestyle Moderate is expected to generate 0.92 times more return on investment than Strategic Allocation. However, Tiaa Cref Lifestyle Moderate is 1.09 times less risky than Strategic Allocation. It trades about 0.32 of its potential returns per unit of risk. Strategic Allocation Moderate is currently generating about 0.29 per unit of risk. If you would invest  1,457  in Tiaa Cref Lifestyle Moderate on April 29, 2025 and sell it today you would earn a total of  125.00  from holding Tiaa Cref Lifestyle Moderate or generate 8.58% 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 Lifestyle Moderate  vs.  Strategic Allocation Moderate

Tiaa Cref Lifestyle

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Lifestyle Moderate are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Tiaa Cref may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Strategic Allocation

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Strategic Allocation Moderate are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Strategic Allocation may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Tiaa Cref and Strategic Allocation

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

The idea behind Tiaa Cref Lifestyle Moderate and Strategic Allocation Moderate 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.