Correlation Between Wesmark Government and Tiaa Cref

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

By analyzing existing cross correlation between Wesmark Government Bond and Tiaa Cref Lifecycle Index, you can compare the effects of market volatilities on Wesmark Government and Tiaa Cref 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 Wesmark Government with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesmark Government and Tiaa Cref.

Diversification Opportunities for Wesmark Government and Tiaa Cref

0.84

Correlation Coefficient

Wesmark Government  Tiaa Cref

Very poor diversification

The 3 months correlation between Wesmark and Tiaa is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Wesmark Government Bond and Tiaa Cref Lifecycle Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Lifecycle and Wesmark Government 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 Wesmark Government Bond are associated (or correlated) with Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Lifecycle has no effect on the direction of Wesmark Government i.e., Wesmark Government and Tiaa Cref go up and down completely randomly.

Pair Corralation between Wesmark Government and Tiaa Cref

Assuming the 90 days horizon Wesmark Government is expected to generate 5.36 times less return on investment than Tiaa Cref. But when comparing it to its historical volatility, Wesmark Government Bond is 1.44 times less risky than Tiaa Cref. It trades about 0.03 of its potential returns per unit of risk. Tiaa Cref Lifecycle Index is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,748  in Tiaa Cref Lifecycle Index on August 4, 2025 and sell it today you would earn a total of  12.00  from holding Tiaa Cref Lifecycle Index or generate 0.69% return on investment over 90 days.

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

Wesmark Government Bond  vs.  Tiaa Cref Lifecycle Index

Wesmark Government Bond

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Wesmark Government Bond are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Wesmark Government is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tiaa Cref Lifecycle

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Lifecycle Index are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Tiaa Cref is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Wesmark Government and Tiaa Cref

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

The idea behind Wesmark Government Bond and Tiaa Cref Lifecycle Index 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.