Correlation Between Firsthand Alternative and Tiaa-cref Small-cap
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Tiaa-cref Small-cap 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 Firsthand Alternative and Tiaa-cref Small-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Tiaa Cref Small Cap Equity, you can compare the effects of market volatilities on Firsthand Alternative and Tiaa-cref Small-cap 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 Firsthand Alternative with a short position of Tiaa-cref Small-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Tiaa-cref Small-cap.
Diversification Opportunities for Firsthand Alternative and Tiaa-cref Small-cap
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Firsthand and Tiaa-cref is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Tiaa Cref Small Cap Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Small-cap and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Tiaa-cref Small-cap. 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 Small-cap has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Tiaa-cref Small-cap go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Tiaa-cref Small-cap
Assuming the 90 days horizon Firsthand Alternative Energy is expected to generate 1.34 times more return on investment than Tiaa-cref Small-cap. However, Firsthand Alternative is 1.34 times more volatile than Tiaa Cref Small Cap Equity. It trades about 0.18 of its potential returns per unit of risk. Tiaa Cref Small Cap Equity is currently generating about 0.18 per unit of risk. If you would invest 922.00 in Firsthand Alternative Energy on June 7, 2025 and sell it today you would earn a total of 157.00 from holding Firsthand Alternative Energy or generate 17.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Tiaa Cref Small Cap Equity
Performance |
| Timeline |
| Firsthand Alternative |
| Tiaa-cref Small-cap |
Firsthand Alternative and Tiaa-cref Small-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Tiaa-cref Small-cap
The main advantage of trading using opposite Firsthand Alternative and Tiaa-cref Small-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Tiaa-cref Small-cap 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 Small-cap will offset losses from the drop in Tiaa-cref Small-cap's long position.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
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Check out your portfolio center.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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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