Correlation Between Tiaa Cref and American Funds
Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and American Funds 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 American Funds 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 American Funds Conservative, you can compare the effects of market volatilities on Tiaa Cref and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and American Funds.
Diversification Opportunities for Tiaa Cref and American Funds
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tiaa and American is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Small Cap Blend and American Funds Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Conse 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Conse has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and American Funds go up and down completely randomly.
Pair Corralation between Tiaa Cref and American Funds
Assuming the 90 days horizon Tiaa Cref Small Cap Blend is expected to generate 4.57 times more return on investment than American Funds. However, Tiaa Cref is 4.57 times more volatile than American Funds Conservative. It trades about 0.3 of its potential returns per unit of risk. American Funds Conservative is currently generating about 0.3 per unit of risk. If you would invest 2,383 in Tiaa Cref Small Cap Blend on June 10, 2025 and sell it today you would earn a total of 190.00 from holding Tiaa Cref Small Cap Blend or generate 7.97% 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 Small Cap Blend vs. American Funds Conservative
Performance |
| Timeline |
| Tiaa Cref Small |
| American Funds Conse |
Tiaa Cref and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa Cref and American Funds
The main advantage of trading using opposite Tiaa Cref and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Tiaa Cref vs. Siit High Yield | Tiaa Cref vs. Morningstar Aggressive Growth | Tiaa Cref vs. Transamerica High Yield | Tiaa Cref vs. The Hartford High |
| American Funds vs. American Funds Growth | American Funds vs. American Funds Balanced | American Funds vs. American Funds Global | American Funds vs. American Funds Growth |
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 Stocks Directory module to find actively traded stocks across global markets.
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