Correlation Between TIAA Real and GreenSky

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Can any of the company-specific risk be diversified away by investing in both TIAA Real and GreenSky 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 Real and GreenSky into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TIAA Real Estate and GreenSky, you can compare the effects of market volatilities on TIAA Real and GreenSky 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 Real with a short position of GreenSky. Check out your portfolio center. Please also check ongoing floating volatility patterns of TIAA Real and GreenSky.

Diversification Opportunities for TIAA Real and GreenSky

-0.8
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between QREARX and GreenSky is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding TIAA Real Estate Account and GreenSky Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenSky and TIAA Real 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 Real Estate are associated (or correlated) with GreenSky. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenSky has no effect on the direction of TIAA Real i.e., TIAA Real and GreenSky go up and down completely randomly.

Pair Corralation between TIAA Real and GreenSky

If you would invest  54,941  in TIAA Real Estate on March 28, 2022 and sell it today you would earn a total of  1,791  from holding TIAA Real Estate or generate 3.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy2.38%
ValuesDaily Returns

TIAA Real Estate Account  vs.  GreenSky Inc

 Performance (%) 
      Timeline 
TIAA Real Estate 
QREARX Performance
50 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in TIAA Real Estate are ranked lower than 50 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, TIAA Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

QREARX Price Channel

GreenSky 
GreenSky Performance
0 of 100
Over the last 90 days GreenSky has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly uncertain forward-looking signals, GreenSky showed solid returns over the last few months and may actually be approaching a breakup point.

TIAA Real and GreenSky Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with TIAA Real and GreenSky

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

TIAA Real Estate

Pair trading matchups for TIAA Real

The idea behind TIAA Real Estate and GreenSky 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.
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 ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

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