Correlation Between Dana Large and Tiaa-cref Emerging
Can any of the company-specific risk be diversified away by investing in both Dana Large and Tiaa-cref Emerging 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 Dana Large and Tiaa-cref Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Large Cap and Tiaa Cref Emerging Markets, you can compare the effects of market volatilities on Dana Large and Tiaa-cref Emerging 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 Dana Large with a short position of Tiaa-cref Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Large and Tiaa-cref Emerging.
Diversification Opportunities for Dana Large and Tiaa-cref Emerging
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dana and Tiaa-cref is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Dana Large Cap and Tiaa Cref Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Emerging and Dana Large 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 Dana Large Cap are associated (or correlated) with Tiaa-cref Emerging. 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 Emerging has no effect on the direction of Dana Large i.e., Dana Large and Tiaa-cref Emerging go up and down completely randomly.
Pair Corralation between Dana Large and Tiaa-cref Emerging
Assuming the 90 days horizon Dana Large Cap is expected to generate 4.02 times more return on investment than Tiaa-cref Emerging. However, Dana Large is 4.02 times more volatile than Tiaa Cref Emerging Markets. It trades about 0.13 of its potential returns per unit of risk. Tiaa Cref Emerging Markets is currently generating about 0.46 per unit of risk. If you would invest 2,306 in Dana Large Cap on June 9, 2025 and sell it today you would earn a total of 84.00 from holding Dana Large Cap or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dana Large Cap vs. Tiaa Cref Emerging Markets
Performance |
| Timeline |
| Dana Large Cap |
| Tiaa Cref Emerging |
Dana Large and Tiaa-cref Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana Large and Tiaa-cref Emerging
The main advantage of trading using opposite Dana Large and Tiaa-cref Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Large position performs unexpectedly, Tiaa-cref Emerging 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 Emerging will offset losses from the drop in Tiaa-cref Emerging's long position.| Dana Large vs. Shelton Emerging Markets | Dana Large vs. Qs Small Capitalization | Dana Large vs. Rbb Fund | Dana Large vs. Versatile Bond Portfolio |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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