Correlation Between ATT and Tiaa-cref Large-cap
Can any of the company-specific risk be diversified away by investing in both ATT and Tiaa-cref Large-cap 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 ATT and Tiaa-cref Large-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Tiaa Cref Large Cap Growth, you can compare the effects of market volatilities on ATT and Tiaa-cref Large-cap 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 ATT with a short position of Tiaa-cref Large-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Tiaa-cref Large-cap.
Diversification Opportunities for ATT and Tiaa-cref Large-cap
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATT and Tiaa-cref is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Tiaa Cref Large Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Large-cap and ATT 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 ATT Inc are associated (or correlated) with Tiaa-cref Large-cap. 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 Large-cap has no effect on the direction of ATT i.e., ATT and Tiaa-cref Large-cap go up and down completely randomly.
Pair Corralation between ATT and Tiaa-cref Large-cap
Taking into account the 90-day investment horizon ATT is expected to generate 2.0 times less return on investment than Tiaa-cref Large-cap. In addition to that, ATT is 1.36 times more volatile than Tiaa Cref Large Cap Growth. It trades about 0.08 of its total potential returns per unit of risk. Tiaa Cref Large Cap Growth is currently generating about 0.22 per unit of volatility. If you would invest 2,863 in Tiaa Cref Large Cap Growth on May 31, 2025 and sell it today you would earn a total of 320.00 from holding Tiaa Cref Large Cap Growth or generate 11.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
ATT Inc vs. Tiaa Cref Large Cap Growth
Performance |
| Timeline |
| ATT Inc |
| Tiaa-cref Large-cap |
ATT and Tiaa-cref Large-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Tiaa-cref Large-cap
The main advantage of trading using opposite ATT and Tiaa-cref Large-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Tiaa-cref Large-cap 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 Large-cap will offset losses from the drop in Tiaa-cref Large-cap's long position.The idea behind ATT Inc and Tiaa Cref Large Cap Growth pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Tiaa-cref Large-cap vs. Tiaa Cref Large Cap Growth | Tiaa-cref Large-cap vs. Tiaa Cref Small Cap Equity | Tiaa-cref Large-cap vs. Tiaa Cref Large Cap Value | Tiaa-cref Large-cap vs. Tiaa Cref Large Cap Growth |
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 Stocks Directory module to find actively traded stocks across global markets.
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