Correlation Between Tiaa Cref and Nuveen Equity
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and Nuveen Equity 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 Nuveen Equity 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 Nuveen Equity Longshort, you can compare the effects of market volatilities on Tiaa Cref and Nuveen Equity 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 Nuveen Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Nuveen Equity.
Diversification Opportunities for Tiaa Cref and Nuveen Equity
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Tiaa and Nuveen is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Large Cap Growth and Nuveen Equity Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Equity Longshort 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 Nuveen Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Equity Longshort has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Nuveen Equity go up and down completely randomly.
Pair Corralation between Tiaa Cref and Nuveen Equity
Assuming the 90 days horizon Tiaa Cref Large Cap Growth is expected to generate 1.78 times more return on investment than Nuveen Equity. However, Tiaa Cref is 1.78 times more volatile than Nuveen Equity Longshort. It trades about 0.43 of its potential returns per unit of risk. Nuveen Equity Longshort is currently generating about 0.46 per unit of risk. If you would invest 2,347 in Tiaa Cref Large Cap Growth on April 20, 2025 and sell it today you would earn a total of 745.00 from holding Tiaa Cref Large Cap Growth or generate 31.74% 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 Large Cap Growth vs. Nuveen Equity Longshort
Performance |
| Timeline |
| Tiaa Cref Large |
| Nuveen Equity Longshort |
Tiaa Cref and Nuveen Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and Nuveen Equity
The main advantage of trading using opposite Tiaa Cref and Nuveen Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref position performs unexpectedly, Nuveen Equity 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 Nuveen Equity will offset losses from the drop in Nuveen Equity's long position.| Tiaa Cref vs. Tiaa Cref Large Cap Growth | Tiaa Cref vs. Tiaa Cref Small Cap Equity | Tiaa Cref vs. Tiaa Cref Large Cap Value | Tiaa Cref vs. Tiaa Cref Large Cap Growth |
| Nuveen Equity vs. Diamond Hill Long Short | Nuveen Equity vs. Nuveen Equity Longshort | Nuveen Equity vs. Nuveen Equity Longshort | Nuveen Equity vs. Guggenheim Risk Managed |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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