Correlation Between Tiaa-cref Small/mid-cap and Ab Discovery
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Small/mid-cap and Ab Discovery 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/mid-cap and Ab Discovery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Smallmid Cap Equity and Ab Discovery Value, you can compare the effects of market volatilities on Tiaa-cref Small/mid-cap and Ab Discovery 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/mid-cap with a short position of Ab Discovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Small/mid-cap and Ab Discovery.
Diversification Opportunities for Tiaa-cref Small/mid-cap and Ab Discovery
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tiaa-cref and ABYSX is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Smallmid Cap Equity and Ab Discovery Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Discovery Value and Tiaa-cref Small/mid-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 Smallmid Cap Equity are associated (or correlated) with Ab Discovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Discovery Value has no effect on the direction of Tiaa-cref Small/mid-cap i.e., Tiaa-cref Small/mid-cap and Ab Discovery go up and down completely randomly.
Pair Corralation between Tiaa-cref Small/mid-cap and Ab Discovery
Assuming the 90 days horizon Tiaa Cref Smallmid Cap Equity is expected to generate 0.95 times more return on investment than Ab Discovery. However, Tiaa Cref Smallmid Cap Equity is 1.06 times less risky than Ab Discovery. It trades about 0.06 of its potential returns per unit of risk. Ab Discovery Value is currently generating about 0.03 per unit of risk. If you would invest 1,154 in Tiaa Cref Smallmid Cap Equity on April 24, 2025 and sell it today you would earn a total of 391.00 from holding Tiaa Cref Smallmid Cap Equity or generate 33.88% 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 Smallmid Cap Equity vs. Ab Discovery Value
Performance |
| Timeline |
| Tiaa-cref Small/mid-cap |
| Ab Discovery Value |
Tiaa-cref Small/mid-cap and Ab Discovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Small/mid-cap and Ab Discovery
The main advantage of trading using opposite Tiaa-cref Small/mid-cap and Ab Discovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Small/mid-cap position performs unexpectedly, Ab Discovery 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 Ab Discovery will offset losses from the drop in Ab Discovery's long position.| Tiaa-cref Small/mid-cap vs. Precious Metals Fund | Tiaa-cref Small/mid-cap vs. Gold And Precious | Tiaa-cref Small/mid-cap vs. Europac Gold Fund | Tiaa-cref Small/mid-cap vs. Goldman Sachs Clean |
| Ab Discovery vs. Ab Discovery Growth | Ab Discovery vs. Ab International Value | Ab Discovery vs. Small Cap Core | Ab Discovery vs. Ab International 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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