Correlation Between Auer Growth and Tiaa-cref Lifecycle
Can any of the company-specific risk be diversified away by investing in both Auer Growth and Tiaa-cref Lifecycle 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 Auer Growth and Tiaa-cref Lifecycle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Tiaa Cref Lifecycle 2050, you can compare the effects of market volatilities on Auer Growth and Tiaa-cref Lifecycle 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 Auer Growth with a short position of Tiaa-cref Lifecycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Tiaa-cref Lifecycle.
Diversification Opportunities for Auer Growth and Tiaa-cref Lifecycle
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Auer and Tiaa-cref is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Tiaa Cref Lifecycle 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Lifecycle and Auer Growth 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 Auer Growth Fund are associated (or correlated) with Tiaa-cref Lifecycle. 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 Auer Growth i.e., Auer Growth and Tiaa-cref Lifecycle go up and down completely randomly.
Pair Corralation between Auer Growth and Tiaa-cref Lifecycle
Assuming the 90 days horizon Auer Growth Fund is expected to generate 1.5 times more return on investment than Tiaa-cref Lifecycle. However, Auer Growth is 1.5 times more volatile than Tiaa Cref Lifecycle 2050. It trades about 0.24 of its potential returns per unit of risk. Tiaa Cref Lifecycle 2050 is currently generating about 0.19 per unit of risk. If you would invest 1,397 in Auer Growth Fund on June 11, 2025 and sell it today you would earn a total of 190.00 from holding Auer Growth Fund or generate 13.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Tiaa Cref Lifecycle 2050
Performance |
| Timeline |
| Auer Growth Fund |
| Tiaa Cref Lifecycle |
Auer Growth and Tiaa-cref Lifecycle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Tiaa-cref Lifecycle
The main advantage of trading using opposite Auer Growth and Tiaa-cref Lifecycle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth position performs unexpectedly, Tiaa-cref Lifecycle 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 Lifecycle will offset losses from the drop in Tiaa-cref Lifecycle's long position.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Oberweis Small Cap Opportunities |
| Tiaa-cref Lifecycle vs. Western Asset New | Tiaa-cref Lifecycle vs. Gmo E Plus | Tiaa-cref Lifecycle vs. Boyd Watterson Limited | Tiaa-cref Lifecycle vs. Qs Growth Fund |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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