Correlation Between Tiaa Cref and Cref Inflation-linked
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and Cref Inflation-linked 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 and Cref Inflation-linked into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Inflation Linked Bond and Cref Inflation Linked Bond, you can compare the effects of market volatilities on Tiaa Cref and Cref Inflation-linked 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 with a short position of Cref Inflation-linked. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Cref Inflation-linked.
Diversification Opportunities for Tiaa Cref and Cref Inflation-linked
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tiaa and Cref is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Inflation Linked Bon and Cref Inflation Linked Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Inflation Linked and Tiaa Cref 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 Inflation Linked Bond are associated (or correlated) with Cref Inflation-linked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Inflation Linked has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Cref Inflation-linked go up and down completely randomly.
Pair Corralation between Tiaa Cref and Cref Inflation-linked
Assuming the 90 days horizon Tiaa Cref Inflation Linked Bond is expected to generate about the same return on investment as Cref Inflation Linked Bond. However, Tiaa Cref is 1.1 times more volatile than Cref Inflation Linked Bond. It trades about 0.31 of its potential returns per unit of risk. Cref Inflation Linked Bond is currently producing about 0.34 per unit of risk. If you would invest 8,773 in Cref Inflation Linked Bond on June 8, 2025 and sell it today you would earn a total of 316.00 from holding Cref Inflation Linked Bond or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Tiaa Cref Inflation Linked Bon vs. Cref Inflation Linked Bond
Performance |
| Timeline |
| Tiaa Cref Inflation |
| Cref Inflation Linked |
Tiaa Cref and Cref Inflation-linked Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and Cref Inflation-linked
The main advantage of trading using opposite Tiaa Cref and Cref Inflation-linked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref position performs unexpectedly, Cref Inflation-linked 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 Cref Inflation-linked will offset losses from the drop in Cref Inflation-linked's long position.| Tiaa Cref vs. Putnam Global Health | Tiaa Cref vs. Alphacentric Lifesci Healthcare | Tiaa Cref vs. The Hartford Healthcare | Tiaa Cref vs. Vanguard Health Care |
| Cref Inflation-linked vs. Nationwide Small Cap | Cref Inflation-linked vs. Lebenthal Lisanti Small | Cref Inflation-linked vs. Jhvit International Small | Cref Inflation-linked vs. Omni Small Cap Value |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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