Correlation Between Robert Half and TriNet
Can any of the company-specific risk be diversified away by investing in both Robert Half 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 Robert Half and TriNet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robert Half International and TriNet Group, you can compare the effects of market volatilities on Robert Half 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 Robert Half with a short position of TriNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robert Half and TriNet.
Diversification Opportunities for Robert Half and TriNet
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Robert and TriNet is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Robert Half International and TriNet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriNet Group and Robert Half 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 Robert Half International 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 Robert Half i.e., Robert Half and TriNet go up and down completely randomly.
Pair Corralation between Robert Half and TriNet
Considering the 90-day investment horizon Robert Half International is expected to generate 0.58 times more return on investment than TriNet. However, Robert Half International is 1.71 times less risky than TriNet. It trades about 0.15 of its potential returns per unit of risk. TriNet Group is currently generating about 0.04 per unit of risk. If you would invest 6,875 in Robert Half International on August 25, 2024 and sell it today you would earn a total of 589.00 from holding Robert Half International or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Robert Half International vs. TriNet Group
Performance |
| Timeline |
| Robert Half International |
| TriNet Group |
Robert Half and TriNet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robert Half and TriNet
The main advantage of trading using opposite Robert Half and TriNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robert Half 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.| Robert Half vs. Kelly Services A | Robert Half vs. Kforce Inc | Robert Half vs. Korn Ferry | Robert Half vs. TrueBlue |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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