Correlation Between Tiaa Cref and The National
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and The National 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 The National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Small Cap Blend and The National Tax Free, you can compare the effects of market volatilities on Tiaa Cref and The National 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 The National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and The National.
Diversification Opportunities for Tiaa Cref and The National
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tiaa and The is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Small Cap Blend and The National Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Tax 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 Small Cap Blend are associated (or correlated) with The National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Tax has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and The National go up and down completely randomly.
Pair Corralation between Tiaa Cref and The National
Assuming the 90 days horizon Tiaa Cref Small Cap Blend is expected to generate 9.47 times more return on investment than The National. However, Tiaa Cref is 9.47 times more volatile than The National Tax Free. It trades about 0.15 of its potential returns per unit of risk. The National Tax Free is currently generating about 0.47 per unit of risk. If you would invest 2,425 in Tiaa Cref Small Cap Blend on July 27, 2025 and sell it today you would earn a total of 283.00 from holding Tiaa Cref Small Cap Blend or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Small Cap Blend vs. The National Tax Free
Performance |
| Timeline |
| Tiaa Cref Small |
| National Tax |
Tiaa Cref and The National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and The National
The main advantage of trading using opposite Tiaa Cref and The National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref position performs unexpectedly, The National 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 The National will offset losses from the drop in The National's long position.| Tiaa Cref vs. Baird Quality Intermediate | Tiaa Cref vs. Oklahoma Municipal Fund | Tiaa Cref vs. Rbc Bluebay Emerging | Tiaa Cref vs. Ambrus Core Bond |
| The National vs. New Jersey Tax Free | The National vs. Amg Managers Loomis | The National vs. Jpmorgan Porate Bond | The National vs. Aberdeen Small 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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