Correlation Between Tiaa-cref Small-cap and Vy Umbia

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

By analyzing existing cross correlation between Tiaa Cref Small Cap Equity and Vy Umbia Contrarian, you can compare the effects of market volatilities on Tiaa-cref Small-cap and Vy Umbia 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 Small-cap with a short position of Vy Umbia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Small-cap and Vy Umbia.

Diversification Opportunities for Tiaa-cref Small-cap and Vy Umbia

0.99

Correlation Coefficient

Tiaa-cref Small-cap  Vy Umbia

No risk reduction

The 3 months correlation between Tiaa-cref and ISFIX is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Small Cap Equity and Vy Umbia Contrarian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Umbia Contrarian and Tiaa-cref Small-cap 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 Small Cap Equity are associated (or correlated) with Vy Umbia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Umbia Contrarian has no effect on the direction of Tiaa-cref Small-cap i.e., Tiaa-cref Small-cap and Vy Umbia go up and down completely randomly.

Pair Corralation between Tiaa-cref Small-cap and Vy Umbia

Assuming the 90 days horizon Tiaa-cref Small-cap is expected to generate 1.09 times less return on investment than Vy Umbia. In addition to that, Tiaa-cref Small-cap is 1.25 times more volatile than Vy Umbia Contrarian. It trades about 0.29 of its total potential returns per unit of risk. Vy Umbia Contrarian is currently generating about 0.4 per unit of volatility. If you would invest  1,498  in Vy Umbia Contrarian on April 20, 2025 and sell it today you would earn a total of  353.00  from holding Vy Umbia Contrarian or generate 23.56% 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 Small Cap Equity  vs.  Vy Umbia Contrarian

Tiaa-cref Small-cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Small Cap Equity are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical indicators, Tiaa-cref Small-cap showed solid returns over the last few months and may actually be approaching a breakup point.

Vy Umbia Contrarian

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Umbia Contrarian are ranked lower than 31 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Vy Umbia showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tiaa-cref Small-cap and Vy Umbia

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

The idea behind Tiaa Cref Small Cap Equity and Vy Umbia Contrarian 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 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.