Correlation Between Mastech Holdings and TriNet
Can any of the company-specific risk be diversified away by investing in both Mastech Holdings and TriNet 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 Mastech Holdings and TriNet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mastech Holdings and TriNet Group, you can compare the effects of market volatilities on Mastech Holdings and TriNet 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 Mastech Holdings with a short position of TriNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mastech Holdings and TriNet.
Diversification Opportunities for Mastech Holdings and TriNet
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mastech and TriNet is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mastech Holdings and TriNet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriNet Group and Mastech Holdings 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 Mastech Holdings are associated (or correlated) with TriNet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriNet Group has no effect on the direction of Mastech Holdings i.e., Mastech Holdings and TriNet go up and down completely randomly.
Pair Corralation between Mastech Holdings and TriNet
Considering the 90-day investment horizon Mastech Holdings is expected to generate 1.1 times more return on investment than TriNet. However, Mastech Holdings is 1.1 times more volatile than TriNet Group. It trades about -0.1 of its potential returns per unit of risk. TriNet Group is currently generating about -0.36 per unit of risk. If you would invest 1,361 in Mastech Holdings on November 27, 2024 and sell it today you would lose (148.00) from holding Mastech Holdings or give up 10.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mastech Holdings vs. TriNet Group
Performance |
| Timeline |
| Mastech Holdings |
| TriNet Group |
Mastech Holdings and TriNet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mastech Holdings and TriNet
The main advantage of trading using opposite Mastech Holdings and TriNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mastech Holdings position performs unexpectedly, TriNet 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 TriNet will offset losses from the drop in TriNet's long position.| Mastech Holdings vs. EVI Industries | Mastech Holdings vs. LGL Group | Mastech Holdings vs. BG Staffing | Mastech Holdings vs. Electromed |
| TriNet vs. ManpowerGroup | TriNet vs. Kforce Inc | TriNet vs. Kelly Services A | TriNet vs. Heidrick Struggles International |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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