Correlation Between Us Government and Tiaa Cref

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Can any of the company-specific risk be diversified away by investing in both Us Government and Tiaa Cref 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 Us Government and Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Us Government Securities and Tiaa Cref Real Estate, you can compare the effects of market volatilities on Us Government and Tiaa Cref 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 Us Government with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Government and Tiaa Cref.

Diversification Opportunities for Us Government and Tiaa Cref

0.19
  Correlation Coefficient

Average diversification

The 3 months correlation between UGSDX and Tiaa is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Us Government Securities and Tiaa Cref Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Real and Us Government 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 Us Government Securities are associated (or correlated) with Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Real has no effect on the direction of Us Government i.e., Us Government and Tiaa Cref go up and down completely randomly.

Pair Corralation between Us Government and Tiaa Cref

Assuming the 90 days horizon Us Government is expected to generate 1.09 times less return on investment than Tiaa Cref. But when comparing it to its historical volatility, Us Government Securities is 8.24 times less risky than Tiaa Cref. It trades about 0.18 of its potential returns per unit of risk. Tiaa Cref Real Estate is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,786  in Tiaa Cref Real Estate on August 24, 2025 and sell it today you would earn a total of  17.00  from holding Tiaa Cref Real Estate or generate 0.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Us Government Securities  vs.  Tiaa Cref Real Estate

 Performance 
       Timeline  
Us Government Securities 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Us Government Securities are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Us Government is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Tiaa Cref Real 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Real Estate are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Tiaa Cref is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Us Government and Tiaa Cref Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Us Government and Tiaa Cref

The main advantage of trading using opposite Us Government and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Government position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.
The idea behind Us Government Securities and Tiaa Cref Real Estate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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