Correlation Between Smallcap Fund and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Smallcap Fund and Tiaa Cref 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 Smallcap Fund and Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smallcap Fund Fka and Tiaa Cref International Equity, you can compare the effects of market volatilities on Smallcap Fund and Tiaa Cref 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 Smallcap Fund with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smallcap Fund and Tiaa Cref.
Diversification Opportunities for Smallcap Fund and Tiaa Cref
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Smallcap and Tiaa is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Smallcap Fund Fka and Tiaa Cref International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref International and Smallcap Fund 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 Smallcap Fund Fka are associated (or correlated) with Tiaa Cref. 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 International has no effect on the direction of Smallcap Fund i.e., Smallcap Fund and Tiaa Cref go up and down completely randomly.
Pair Corralation between Smallcap Fund and Tiaa Cref
Assuming the 90 days horizon Smallcap Fund Fka is expected to generate 1.05 times more return on investment than Tiaa Cref. However, Smallcap Fund is 1.05 times more volatile than Tiaa Cref International Equity. It trades about 0.35 of its potential returns per unit of risk. Tiaa Cref International Equity is currently generating about 0.09 per unit of risk. If you would invest 2,467 in Smallcap Fund Fka on April 19, 2025 and sell it today you would earn a total of 138.00 from holding Smallcap Fund Fka or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Smallcap Fund Fka vs. Tiaa Cref International Equity
Performance |
| Timeline |
| Smallcap Fund Fka |
| Tiaa Cref International |
Smallcap Fund and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smallcap Fund and Tiaa Cref
The main advantage of trading using opposite Smallcap Fund and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smallcap Fund position performs unexpectedly, Tiaa Cref 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 will offset losses from the drop in Tiaa Cref's long position.| Smallcap Fund vs. United Kingdom Small | Smallcap Fund vs. Ab Small Cap | Smallcap Fund vs. Small Pany Growth | Smallcap Fund vs. Lebenthal Lisanti Small |
| Tiaa Cref vs. Goldman Sachs Technology | Tiaa Cref vs. Icon Information Technology | Tiaa Cref vs. Global Technology Portfolio | Tiaa Cref vs. Firsthand Technology Opportunities |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |