Correlation Analysis Between DOW and TIAA CREF

This module allows you to analyze existing cross correlation between DOW and TIAA CREF Mid Cap Value Fund Re. You can compare the effects of market volatilities on DOW 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 DOW with a short position of TIAA CREF. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and TIAA CREF.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

 Predicted Return Density 
      Returns 

DOW  vs.  TIAA CREF Mid Cap Value Fund R

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 1.34 times less return on investment than TIAA CREF. But when comparing it to its historical volatility, DOW is 1.14 times less risky than TIAA CREF. It trades about 0.03 of its potential returns per unit of risk. TIAA CREF Mid Cap Value Fund Re is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2,006  in TIAA CREF Mid Cap Value Fund Re on August 20, 2019 and sell it today you would earn a total of  42.00  from holding TIAA CREF Mid Cap Value Fund Re or generate 2.09% return on investment over 30 days.

Pair Corralation between DOW and TIAA CREF

0.47
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy96.83%
ValuesDaily Returns

Diversification Opportunities for DOW and TIAA CREF

DOW diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and TIAA CREF Mid Cap Value Fund R in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on TIAA CREF Mid and DOW 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 DOW 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 Mid has no effect on the direction of DOW i.e. DOW and TIAA CREF go up and down completely randomly.
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See also your portfolio center. Please also try Theme Ratings module to determine theme ratings based on digital equity recommendations. macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.


 
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