Correlation Between Tiaa-cref Lifecycle and Saat Defensive
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Lifecycle and Saat Defensive 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 Saat Defensive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Lifecycle Retirement and Saat Defensive Strategy, you can compare the effects of market volatilities on Tiaa-cref Lifecycle and Saat Defensive 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 Saat Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Lifecycle and Saat Defensive.
Diversification Opportunities for Tiaa-cref Lifecycle and Saat Defensive
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tiaa-cref and Saat is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Lifecycle Retirement and Saat Defensive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Defensive Strategy 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 Retirement are associated (or correlated) with Saat Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Defensive Strategy has no effect on the direction of Tiaa-cref Lifecycle i.e., Tiaa-cref Lifecycle and Saat Defensive go up and down completely randomly.
Pair Corralation between Tiaa-cref Lifecycle and Saat Defensive
Assuming the 90 days horizon Tiaa Cref Lifecycle Retirement is expected to generate 2.61 times more return on investment than Saat Defensive. However, Tiaa-cref Lifecycle is 2.61 times more volatile than Saat Defensive Strategy. It trades about 0.29 of its potential returns per unit of risk. Saat Defensive Strategy is currently generating about 0.28 per unit of risk. If you would invest 1,135 in Tiaa Cref Lifecycle Retirement on May 30, 2025 and sell it today you would earn a total of 56.00 from holding Tiaa Cref Lifecycle Retirement or generate 4.93% 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 Retirement vs. Saat Defensive Strategy
Performance |
| Timeline |
| Tiaa Cref Lifecycle |
| Saat Defensive Strategy |
Tiaa-cref Lifecycle and Saat Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Lifecycle and Saat Defensive
The main advantage of trading using opposite Tiaa-cref Lifecycle and Saat Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Lifecycle position performs unexpectedly, Saat Defensive 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 Saat Defensive will offset losses from the drop in Saat Defensive's long position.| Tiaa-cref Lifecycle vs. The Hartford Healthcare | Tiaa-cref Lifecycle vs. Allianzgi Health Sciences | Tiaa-cref Lifecycle vs. Alger Health Sciences | Tiaa-cref Lifecycle vs. Baron Health Care |
| Saat Defensive vs. Davis Government Bond | Saat Defensive vs. Federated Government Income | Saat Defensive vs. Franklin Adjustable Government | Saat Defensive vs. Intermediate Government Bond |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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