Correlation Between TRINET GROUP and PERSOL HOLDINGS
Can any of the company-specific risk be diversified away by investing in both TRINET GROUP and PERSOL HOLDINGS 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 GROUP and PERSOL HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRINET GROUP INC and PERSOL HOLDINGS LTD, you can compare the effects of market volatilities on TRINET GROUP and PERSOL HOLDINGS 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 GROUP with a short position of PERSOL HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRINET GROUP and PERSOL HOLDINGS.
Diversification Opportunities for TRINET GROUP and PERSOL HOLDINGS
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TRINET and PERSOL is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding TRINET GROUP INC and PERSOL HOLDINGS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PERSOL HOLDINGS LTD and TRINET GROUP 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 INC are associated (or correlated) with PERSOL HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PERSOL HOLDINGS LTD has no effect on the direction of TRINET GROUP i.e., TRINET GROUP and PERSOL HOLDINGS go up and down completely randomly.
Pair Corralation between TRINET GROUP and PERSOL HOLDINGS
Assuming the 90 days horizon TRINET GROUP is expected to generate 5.8 times less return on investment than PERSOL HOLDINGS. But when comparing it to its historical volatility, TRINET GROUP INC is 1.42 times less risky than PERSOL HOLDINGS. It trades about 0.0 of its potential returns per unit of risk. PERSOL HOLDINGS LTD is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 177.00 in PERSOL HOLDINGS LTD on November 28, 2024 and sell it today you would lose (26.00) from holding PERSOL HOLDINGS LTD or give up 14.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRINET GROUP INC vs. PERSOL HOLDINGS LTD
Performance |
| Timeline |
| TRINET GROUP INC |
| PERSOL HOLDINGS LTD |
TRINET GROUP and PERSOL HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRINET GROUP and PERSOL HOLDINGS
The main advantage of trading using opposite TRINET GROUP and PERSOL HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRINET GROUP position performs unexpectedly, PERSOL HOLDINGS 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 PERSOL HOLDINGS will offset losses from the drop in PERSOL HOLDINGS's long position.| TRINET GROUP vs. PLAYTECH | TRINET GROUP vs. Carnegie Clean Energy | TRINET GROUP vs. ePlay Digital | TRINET GROUP vs. EEDUCATION ALBERT AB |
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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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