Correlation Between Scout Small and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Scout Small 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 Scout Small and Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scout Small Cap and Tiaa Cref International Equity, you can compare the effects of market volatilities on Scout Small 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 Scout Small with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scout Small and Tiaa Cref.
Diversification Opportunities for Scout Small and Tiaa Cref
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Scout and Tiaa is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Scout Small Cap 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 Scout Small 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 Scout Small Cap 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 Scout Small i.e., Scout Small and Tiaa Cref go up and down completely randomly.
Pair Corralation between Scout Small and Tiaa Cref
Assuming the 90 days horizon Scout Small Cap is expected to generate 1.38 times more return on investment than Tiaa Cref. However, Scout Small is 1.38 times more volatile than Tiaa Cref International Equity. It trades about 0.06 of its potential returns per unit of risk. Tiaa Cref International Equity is currently generating about 0.05 per unit of risk. If you would invest 2,387 in Scout Small Cap on September 18, 2024 and sell it today you would earn a total of 1,018 from holding Scout Small Cap or generate 42.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Scout Small Cap vs. Tiaa Cref International Equity
Performance |
Timeline |
Scout Small Cap |
Tiaa Cref International |
Scout Small and Tiaa Cref Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Scout Small and Tiaa Cref
The main advantage of trading using opposite Scout Small and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scout Small 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.Scout Small vs. Carillon Chartwell Short | Scout Small vs. Chartwell Short Duration | Scout Small vs. Carillon Chartwell Short | Scout Small vs. Eagle Growth Income |
Tiaa Cref vs. Smallcap Growth Fund | Tiaa Cref vs. Eagle Small Cap | Tiaa Cref vs. Scout Small Cap | Tiaa Cref vs. Champlain Small |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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