Correlation Between TriNet and Robert Half

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

By analyzing existing cross correlation between TriNet Group and Robert Half International, you can compare the effects of market volatilities on TriNet and Robert Half 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 TriNet with a short position of Robert Half. Check out your portfolio center. Please also check ongoing floating volatility patterns of TriNet and Robert Half.

Diversification Opportunities for TriNet and Robert Half

0.43

Correlation Coefficient

TriNet  Robert Half

Very weak diversification

The 3 months correlation between TriNet and Robert is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding TriNet Group and Robert Half International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robert Half International and TriNet 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 TriNet Group are associated (or correlated) with Robert Half. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robert Half International has no effect on the direction of TriNet i.e., TriNet and Robert Half go up and down completely randomly.

Pair Corralation between TriNet and Robert Half

Given the investment horizon of 90 days TriNet Group is expected to generate 1.19 times more return on investment than Robert Half. However, TriNet is 1.19 times more volatile than Robert Half International. It trades about 0.04 of its potential returns per unit of risk. Robert Half International is currently generating about -0.01 per unit of risk. If you would invest  7,477  in TriNet Group on February 13, 2024 and sell it today you would earn a total of  2,869  from holding TriNet Group or generate 38.37% return on investment over 90 days.

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

TriNet Group  vs.  Robert Half International

TriNet Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TriNet Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, TriNet is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Robert Half International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Robert Half International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's technical indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with TriNet and Robert Half

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

The idea behind TriNet Group and Robert Half International 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.