Correlation Between Tiaa-cref Small-cap and Columbia
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Small-cap and Columbia 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 Small-cap and Columbia 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 Columbia Treasury Index, you can compare the effects of market volatilities on Tiaa-cref Small-cap and Columbia 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 Small-cap with a short position of Columbia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Small-cap and Columbia.
Diversification Opportunities for Tiaa-cref Small-cap and Columbia
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tiaa-cref and Columbia is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Small Cap Blend and Columbia Treasury Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Treasury Index and Tiaa-cref Small-cap 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 Columbia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Treasury Index has no effect on the direction of Tiaa-cref Small-cap i.e., Tiaa-cref Small-cap and Columbia go up and down completely randomly.
Pair Corralation between Tiaa-cref Small-cap and Columbia
Assuming the 90 days horizon Tiaa Cref Small Cap Blend is expected to generate 5.49 times more return on investment than Columbia. However, Tiaa-cref Small-cap is 5.49 times more volatile than Columbia Treasury Index. It trades about 0.06 of its potential returns per unit of risk. Columbia Treasury Index is currently generating about 0.14 per unit of risk. If you would invest 2,467 in Tiaa Cref Small Cap Blend on August 18, 2025 and sell it today you would earn a total of 109.00 from holding Tiaa Cref Small Cap Blend or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Small Cap Blend vs. Columbia Treasury Index
Performance |
| Timeline |
| Tiaa-cref Small-cap |
| Columbia Treasury Index |
Tiaa-cref Small-cap and Columbia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Small-cap and Columbia
The main advantage of trading using opposite Tiaa-cref Small-cap and Columbia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Small-cap position performs unexpectedly, Columbia 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 Columbia will offset losses from the drop in Columbia's long position.| Tiaa-cref Small-cap vs. Fidelity Advisor Gold | Tiaa-cref Small-cap vs. Invesco Gold Special | Tiaa-cref Small-cap vs. Global Gold Fund | Tiaa-cref Small-cap vs. International Investors Gold |
| Columbia vs. Columbia Porate Income | Columbia vs. Columbia Ultra Short | Columbia vs. Multi Manager Directional Alternative | Columbia vs. Columbia 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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