Correlation Between Tiaa Cref and Caldwell Orkin

Can any of the company-specific risk be diversified away by investing in both Tiaa Cref and Caldwell Orkin 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 and Caldwell Orkin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tiaa Cref Large Cap Growth and Caldwell Orkin Market, you can compare the effects of market volatilities on Tiaa Cref and Caldwell Orkin 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 with a short position of Caldwell Orkin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa Cref and Caldwell Orkin.

Diversification Opportunities for Tiaa Cref and Caldwell Orkin

0.92

Correlation Coefficient

Tiaa Cref  Caldwell Orkin

Almost no diversification

The 3 months correlation between Tiaa and Caldwell is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Large Cap Growth and Caldwell Orkin Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caldwell Orkin Market and Tiaa Cref 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 Large Cap Growth are associated (or correlated) with Caldwell Orkin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caldwell Orkin Market has no effect on the direction of Tiaa Cref i.e., Tiaa Cref and Caldwell Orkin go up and down completely randomly.

Pair Corralation between Tiaa Cref and Caldwell Orkin

Assuming the 90 days horizon Tiaa Cref Large Cap Growth is expected to generate 1.16 times more return on investment than Caldwell Orkin. However, Tiaa Cref is 1.16 times more volatile than Caldwell Orkin Market. It trades about 0.12 of its potential returns per unit of risk. Caldwell Orkin Market is currently generating about 0.13 per unit of risk. If you would invest  3,660  in Tiaa Cref Large Cap Growth on September 28, 2024 and sell it today you would earn a total of  3,164  from holding Tiaa Cref Large Cap Growth or generate 86.45% 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 Large Cap Growth  vs.  Caldwell Orkin Market

Tiaa Cref Large

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Large Cap Growth are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Tiaa Cref is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Caldwell Orkin Market

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Caldwell Orkin Market are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Caldwell Orkin may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Tiaa Cref and Caldwell Orkin

The main advantage of trading using opposite Tiaa Cref and Caldwell Orkin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa Cref position performs unexpectedly, Caldwell Orkin 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 Caldwell Orkin will offset losses from the drop in Caldwell Orkin's long position.

The idea behind Tiaa Cref Large Cap Growth and Caldwell Orkin Market 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.