Correlation Between Guidemark(r) Large and Tiaa-cref Real

Can any of the company-specific risk be diversified away by investing in both Guidemark(r) Large and Tiaa-cref Real 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 Guidemark(r) Large and Tiaa-cref Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Guidemark Large Cap and Tiaa Cref Real Estate, you can compare the effects of market volatilities on Guidemark(r) Large and Tiaa-cref Real 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 Guidemark(r) Large with a short position of Tiaa-cref Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidemark(r) Large and Tiaa-cref Real.

Diversification Opportunities for Guidemark(r) Large and Tiaa-cref Real

0.14

Correlation Coefficient

Guidemark(r) Large  Tiaa-cref Real

Average diversification

The 3 months correlation between GUIDEMARK(R) and Tiaa-cref is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Guidemark Large Cap 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 Guidemark(r) Large 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 Guidemark Large Cap are associated (or correlated) with Tiaa-cref Real. 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 Guidemark(r) Large i.e., Guidemark(r) Large and Tiaa-cref Real go up and down completely randomly.

Pair Corralation between Guidemark(r) Large and Tiaa-cref Real

Assuming the 90 days horizon Guidemark Large Cap is expected to under-perform the Tiaa-cref Real. In addition to that, Guidemark(r) Large is 1.12 times more volatile than Tiaa Cref Real Estate. It trades about -0.12 of its total potential returns per unit of risk. Tiaa Cref Real Estate is currently generating about 0.0 per unit of volatility. If you would invest  1,905  in Tiaa Cref Real Estate on December 25, 2024 and sell it today you would lose (11.00) from holding Tiaa Cref Real Estate or give up 0.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Guidemark Large Cap  vs.  Tiaa Cref Real Estate

Guidemark Large Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Guidemark Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Tiaa Cref Real

Risk-Adjusted Performance

Weak

Over the last 90 days Tiaa Cref Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Tiaa-cref Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Guidemark(r) Large and Tiaa-cref Real

The main advantage of trading using opposite Guidemark(r) Large and Tiaa-cref Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidemark(r) Large position performs unexpectedly, Tiaa-cref Real 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 Real will offset losses from the drop in Tiaa-cref Real's long position.

The idea behind Guidemark Large Cap 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..