Correlation Between Tiaa Cref and Federated Kaufmann
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and Federated Kaufmann 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 Federated Kaufmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Large Cap Growth and Federated Kaufmann Large, you can compare the effects of market volatilities on Tiaa Cref and Federated Kaufmann 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 Federated Kaufmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Federated Kaufmann.
Diversification Opportunities for Tiaa Cref and Federated Kaufmann
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tiaa and Federated is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Large Cap Growth and Federated Kaufmann Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Kaufmann Large 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 Large Cap Growth are associated (or correlated) with Federated Kaufmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Kaufmann Large has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Federated Kaufmann go up and down completely randomly.
Pair Corralation between Tiaa Cref and Federated Kaufmann
Assuming the 90 days horizon Tiaa Cref Large Cap Growth is expected to generate 1.05 times more return on investment than Federated Kaufmann. However, Tiaa Cref is 1.05 times more volatile than Federated Kaufmann Large. It trades about 0.27 of its potential returns per unit of risk. Federated Kaufmann Large is currently generating about 0.27 per unit of risk. If you would invest 2,501 in Tiaa Cref Large Cap Growth on April 15, 2025 and sell it today you would earn a total of 541.00 from holding Tiaa Cref Large Cap Growth or generate 21.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Large Cap Growth vs. Federated Kaufmann Large
Performance |
| Timeline |
| Tiaa Cref Large |
Risk-Adjusted Performance
Solid
Weak | Strong |
| Federated Kaufmann Large |
Tiaa Cref and Federated Kaufmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and Federated Kaufmann
The main advantage of trading using opposite Tiaa Cref and Federated Kaufmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref position performs unexpectedly, Federated Kaufmann 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 Federated Kaufmann will offset losses from the drop in Federated Kaufmann's long position.| Tiaa Cref vs. Tiaa Cref Small Cap Equity | Tiaa Cref vs. Tiaa Cref Large Cap Value | Tiaa Cref vs. Tiaa Cref Growth Income |
| Federated Kaufmann vs. Qs Large Cap | Federated Kaufmann vs. Transamerica Large Cap | Federated Kaufmann vs. American Mutual Fund | Federated Kaufmann vs. Fidelity Large 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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