Correlation Between Vy(r) Baron and Tiaa-cref International

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

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

Diversification Opportunities for Vy(r) Baron and Tiaa-cref International

-0.46

Correlation Coefficient

Vy(r) Baron  Tiaa-cref International

Very good diversification

The 3 months correlation between Vy(r) and Tiaa-cref is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Vy Baron Growth 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 Vy(r) Baron 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 Vy Baron Growth are associated (or correlated) with Tiaa-cref International. 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 Vy(r) Baron i.e., Vy(r) Baron and Tiaa-cref International go up and down completely randomly.

Pair Corralation between Vy(r) Baron and Tiaa-cref International

Assuming the 90 days horizon Vy Baron Growth is expected to under-perform the Tiaa-cref International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Vy Baron Growth is 1.04 times less risky than Tiaa-cref International. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Tiaa Cref International Equity is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  1,392  in Tiaa Cref International Equity on December 25, 2024 and sell it today you would earn a total of  135.00  from holding Tiaa Cref International Equity or generate 9.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Vy Baron Growth  vs.  Tiaa Cref International Equity

Vy Baron Growth

Risk-Adjusted Performance

Very Weak

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

Tiaa Cref International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref International Equity are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Tiaa-cref International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Vy(r) Baron and Tiaa-cref International

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

The idea behind Vy Baron Growth and Tiaa Cref International Equity 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.