Correlation Between Riversource Series and Tiaa-cref Lifestyle

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

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

Diversification Opportunities for Riversource Series and Tiaa-cref Lifestyle

0.52

Correlation Coefficient

Riversource Series  Tiaa-cref Lifestyle

Very weak diversification

The 3 months correlation between Riversource and Tiaa-cref is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Riversource Series Trust and Tiaa Cref Lifestyle Conservati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Lifestyle and Riversource Series 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 Riversource Series Trust are associated (or correlated) with Tiaa-cref Lifestyle. 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 Lifestyle has no effect on the direction of Riversource Series i.e., Riversource Series and Tiaa-cref Lifestyle go up and down completely randomly.

Pair Corralation between Riversource Series and Tiaa-cref Lifestyle

Assuming the 90 days horizon Riversource Series Trust is expected to generate 3.46 times more return on investment than Tiaa-cref Lifestyle. However, Riversource Series is 3.46 times more volatile than Tiaa Cref Lifestyle Conservative. It trades about 0.23 of its potential returns per unit of risk. Tiaa Cref Lifestyle Conservative is currently generating about 0.31 per unit of risk. If you would invest  920.00  in Riversource Series Trust on April 29, 2025 and sell it today you would earn a total of  145.00  from holding Riversource Series Trust or generate 15.76% return on investment over 90 days.

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

Riversource Series Trust  vs.  Tiaa Cref Lifestyle Conservati

Riversource Series Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Riversource Series Trust are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Riversource Series showed solid returns over the last few months and may actually be approaching a breakup point.

Tiaa Cref Lifestyle

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Lifestyle Conservative are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Tiaa-cref Lifestyle is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Riversource Series and Tiaa-cref Lifestyle

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

The idea behind Riversource Series Trust and Tiaa Cref Lifestyle Conservative 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.