Correlation Between Tiaa-cref Lifecycle and Tiaa-cref International
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Lifecycle and Tiaa-cref International 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 Tiaa-cref Lifecycle and Tiaa-cref International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Lifecycle Index and Tiaa Cref International Equity, you can compare the effects of market volatilities on Tiaa-cref Lifecycle and Tiaa-cref International 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 Tiaa-cref Lifecycle with a short position of Tiaa-cref International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Lifecycle and Tiaa-cref International.
Diversification Opportunities for Tiaa-cref Lifecycle and Tiaa-cref International
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tiaa-cref and Tiaa-cref is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Lifecycle Index 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 Tiaa-cref Lifecycle 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 Tiaa Cref Lifecycle Index are associated (or correlated) with Tiaa-cref International. 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 Tiaa-cref Lifecycle i.e., Tiaa-cref Lifecycle and Tiaa-cref International go up and down completely randomly.
Pair Corralation between Tiaa-cref Lifecycle and Tiaa-cref International
Assuming the 90 days horizon Tiaa Cref Lifecycle Index is expected to generate 0.93 times more return on investment than Tiaa-cref International. However, Tiaa Cref Lifecycle Index is 1.08 times less risky than Tiaa-cref International. It trades about 0.07 of its potential returns per unit of risk. Tiaa Cref International Equity is currently generating about 0.06 per unit of risk. If you would invest 1,175 in Tiaa Cref Lifecycle Index on April 20, 2025 and sell it today you would earn a total of 375.00 from holding Tiaa Cref Lifecycle Index or generate 31.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Lifecycle Index vs. Tiaa Cref International Equity
Performance |
| Timeline |
| Tiaa Cref Lifecycle |
| Tiaa Cref International |
Tiaa-cref Lifecycle and Tiaa-cref International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Lifecycle and Tiaa-cref International
The main advantage of trading using opposite Tiaa-cref Lifecycle and Tiaa-cref International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Lifecycle position performs unexpectedly, Tiaa-cref International 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 International will offset losses from the drop in Tiaa-cref International's long position.| Tiaa-cref Lifecycle vs. Catalyst Exceed Defined | Tiaa-cref Lifecycle vs. Auer Growth Fund | Tiaa-cref Lifecycle vs. Center St Brookfield | Tiaa-cref Lifecycle vs. The Tocqueville Fund |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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