Correlation Between Tiaa-cref Lifecycle and Tiaa-cref Managed
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Lifecycle and Tiaa-cref Managed 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 Managed 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 Managed Allocation, you can compare the effects of market volatilities on Tiaa-cref Lifecycle and Tiaa-cref Managed 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 Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Lifecycle and Tiaa-cref Managed.
Diversification Opportunities for Tiaa-cref Lifecycle and Tiaa-cref Managed
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Tiaa-cref and Tiaa-cref is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Lifecycle Index and Tiaa Cref Managed Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Managed 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 Managed. 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 Managed has no effect on the direction of Tiaa-cref Lifecycle i.e., Tiaa-cref Lifecycle and Tiaa-cref Managed go up and down completely randomly.
Pair Corralation between Tiaa-cref Lifecycle and Tiaa-cref Managed
Assuming the 90 days horizon Tiaa-cref Lifecycle is expected to generate 1.14 times less return on investment than Tiaa-cref Managed. But when comparing it to its historical volatility, Tiaa Cref Lifecycle Index is 1.28 times less risky than Tiaa-cref Managed. It trades about 0.26 of its potential returns per unit of risk. Tiaa Cref Managed Allocation is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,270 in Tiaa Cref Managed Allocation on June 1, 2025 and sell it today you would earn a total of 74.00 from holding Tiaa Cref Managed Allocation or generate 5.83% 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 Managed Allocation
Performance |
| Timeline |
| Tiaa Cref Lifecycle |
| Tiaa Cref Managed |
Tiaa-cref Lifecycle and Tiaa-cref Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Lifecycle and Tiaa-cref Managed
The main advantage of trading using opposite Tiaa-cref Lifecycle and Tiaa-cref Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Lifecycle position performs unexpectedly, Tiaa-cref Managed 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 Managed will offset losses from the drop in Tiaa-cref Managed's long position.| Tiaa-cref Lifecycle vs. Ab Bond Inflation | Tiaa-cref Lifecycle vs. Lord Abbett Inflation | Tiaa-cref Lifecycle vs. Ab Bond Inflation | Tiaa-cref Lifecycle vs. Tiaa Cref Inflation Linked Bond |
| Tiaa-cref Managed vs. Tiaa Cref Emerging Markets | Tiaa-cref Managed vs. Tiaa Cref Emerging Markets | Tiaa-cref Managed vs. Tiaa Cref Emerging Markets | Tiaa-cref Managed vs. Tiaa Cref Emerging Markets |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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