Correlation Between Citigroup and Riversource Series

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

By analyzing existing cross correlation between Citigroup and Riversource Series Trust, you can compare the effects of market volatilities on Citigroup and Riversource Series 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 Citigroup with a short position of Riversource Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Riversource Series.

Diversification Opportunities for Citigroup and Riversource Series

0.65

Correlation Coefficient

Citigroup  Riversource Series

Poor diversification

The 3 months correlation between Citigroup and Riversource is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Riversource Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riversource Series Trust and Citigroup 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 Citigroup are associated (or correlated) with Riversource Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riversource Series Trust has no effect on the direction of Citigroup i.e., Citigroup and Riversource Series go up and down completely randomly.

Pair Corralation between Citigroup and Riversource Series

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.48 times more return on investment than Riversource Series. However, Citigroup is 1.48 times more volatile than Riversource Series Trust. It trades about 0.26 of its potential returns per unit of risk. Riversource Series Trust is currently generating about 0.12 per unit of risk. If you would invest  7,442  in Citigroup on May 10, 2025 and sell it today you would earn a total of  1,831  from holding Citigroup or generate 24.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Riversource Series Trust

Citigroup

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Riversource Series Trust

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Riversource Series Trust are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Riversource Series may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Citigroup and Riversource Series

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

The idea behind Citigroup and Riversource Series Trust 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 the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.