Correlation Between Nasdaq-100 Index and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100 Index 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 Nasdaq-100 Index and Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Index Fund and Tiaa Cref International Equity, you can compare the effects of market volatilities on Nasdaq-100 Index 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 Nasdaq-100 Index with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100 Index and Tiaa Cref.
Diversification Opportunities for Nasdaq-100 Index and Tiaa Cref
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nasdaq-100 and Tiaa is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and Tiaa Cref International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref International and Nasdaq-100 Index 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 Nasdaq 100 Index Fund 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 International has no effect on the direction of Nasdaq-100 Index i.e., Nasdaq-100 Index and Tiaa Cref go up and down completely randomly.
Pair Corralation between Nasdaq-100 Index and Tiaa Cref
Assuming the 90 days horizon Nasdaq 100 Index Fund is expected to generate 0.87 times more return on investment than Tiaa Cref. However, Nasdaq 100 Index Fund is 1.15 times less risky than Tiaa Cref. It trades about 0.21 of its potential returns per unit of risk. Tiaa Cref International Equity is currently generating about 0.1 per unit of risk. If you would invest 5,298 in Nasdaq 100 Index Fund on May 31, 2025 and sell it today you would earn a total of 553.00 from holding Nasdaq 100 Index Fund or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. Tiaa Cref International Equity
Performance |
| Timeline |
| Nasdaq 100 Index |
| Tiaa Cref International |
Nasdaq-100 Index and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100 Index and Tiaa Cref
The main advantage of trading using opposite Nasdaq-100 Index and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100 Index 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.| Nasdaq-100 Index vs. Lord Abbett Inflation | Nasdaq-100 Index vs. Ab Bond Inflation | Nasdaq-100 Index vs. Inflation Adjusted Bond Fund | Nasdaq-100 Index vs. Vy Blackrock Inflation |
| Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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