Correlation Between Kraft Heinz and Tiaa-cref Lifecycle
Can any of the company-specific risk be diversified away by investing in both Kraft Heinz 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 Kraft Heinz 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 Kraft Heinz Co and Tiaa Cref Lifecycle Index, you can compare the effects of market volatilities on Kraft Heinz 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 Kraft Heinz with a short position of Tiaa-cref Lifecycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Tiaa-cref Lifecycle.
Diversification Opportunities for Kraft Heinz and Tiaa-cref Lifecycle
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kraft and Tiaa-cref is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co 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 Kraft Heinz 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 Kraft Heinz Co 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 Kraft Heinz i.e., Kraft Heinz and Tiaa-cref Lifecycle go up and down completely randomly.
Pair Corralation between Kraft Heinz and Tiaa-cref Lifecycle
Considering the 90-day investment horizon Kraft Heinz Co is expected to under-perform the Tiaa-cref Lifecycle. In addition to that, Kraft Heinz is 3.62 times more volatile than Tiaa Cref Lifecycle Index. It trades about -0.01 of its total potential returns per unit of risk. Tiaa Cref Lifecycle Index is currently generating about 0.11 per unit of volatility. If you would invest 1,440 in Tiaa Cref Lifecycle Index on June 8, 2025 and sell it today you would earn a total of 336.00 from holding Tiaa Cref Lifecycle Index or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraft Heinz Co vs. Tiaa Cref Lifecycle Index
Performance |
| Timeline |
| Kraft Heinz |
| Tiaa Cref Lifecycle |
Kraft Heinz and Tiaa-cref Lifecycle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraft Heinz and Tiaa-cref Lifecycle
The main advantage of trading using opposite Kraft Heinz and Tiaa-cref Lifecycle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz 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.| Kraft Heinz vs. General Mills | Kraft Heinz vs. Campbells Co | Kraft Heinz vs. ConAgra Foods | Kraft Heinz vs. Hormel Foods |
| Tiaa-cref Lifecycle vs. Omni Small Cap Value | Tiaa-cref Lifecycle vs. Goldman Sachs Small | Tiaa-cref Lifecycle vs. Foundry Partners Fundamental | Tiaa-cref Lifecycle vs. Perkins Small Cap |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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