Correlation Between Dfa Five-year and Tiaa-cref Intl
Can any of the company-specific risk be diversified away by investing in both Dfa Five-year and Tiaa-cref Intl 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 Dfa Five-year and Tiaa-cref Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dfa Five Year Global and Tiaa Cref Intl Bond, you can compare the effects of market volatilities on Dfa Five-year and Tiaa-cref Intl 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 Dfa Five-year with a short position of Tiaa-cref Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dfa Five-year and Tiaa-cref Intl.
Diversification Opportunities for Dfa Five-year and Tiaa-cref Intl
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dfa and Tiaa-cref is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Dfa Five Year Global and Tiaa Cref Intl Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Intl and Dfa Five-year 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 Dfa Five Year Global are associated (or correlated) with Tiaa-cref Intl. 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 Intl has no effect on the direction of Dfa Five-year i.e., Dfa Five-year and Tiaa-cref Intl go up and down completely randomly.
Pair Corralation between Dfa Five-year and Tiaa-cref Intl
Assuming the 90 days horizon Dfa Five-year is expected to generate 1.48 times less return on investment than Tiaa-cref Intl. But when comparing it to its historical volatility, Dfa Five Year Global is 1.94 times less risky than Tiaa-cref Intl. It trades about 0.34 of its potential returns per unit of risk. Tiaa Cref Intl Bond is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 890.00 in Tiaa Cref Intl Bond on July 26, 2025 and sell it today you would earn a total of 17.00 from holding Tiaa Cref Intl Bond or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dfa Five Year Global vs. Tiaa Cref Intl Bond
Performance |
| Timeline |
| Dfa Five Year |
| Tiaa Cref Intl |
Dfa Five-year and Tiaa-cref Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dfa Five-year and Tiaa-cref Intl
The main advantage of trading using opposite Dfa Five-year and Tiaa-cref Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dfa Five-year position performs unexpectedly, Tiaa-cref Intl 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 Intl will offset losses from the drop in Tiaa-cref Intl's long position.| Dfa Five-year vs. Auer Growth Fund | Dfa Five-year vs. Western Asset Short | Dfa Five-year vs. Pnc Emerging Markets | Dfa Five-year vs. Barings Active Short |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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