Correlation Between TriNet and GEE
Can any of the company-specific risk be diversified away by investing in both TriNet and GEE 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 GEE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TriNet Group and GEE Group, you can compare the effects of market volatilities on TriNet and GEE 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 GEE. Check out your portfolio center. Please also check ongoing floating volatility patterns of TriNet and GEE.
Diversification Opportunities for TriNet and GEE
Modest diversification
The 3 months correlation between TriNet and GEE is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding TriNet Group and GEE Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEE Group 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 GEE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEE Group has no effect on the direction of TriNet i.e., TriNet and GEE go up and down completely randomly.
Pair Corralation between TriNet and GEE
Given the investment horizon of 90 days TriNet Group is expected to generate 1.22 times more return on investment than GEE. However, TriNet is 1.22 times more volatile than GEE Group. It trades about 0.15 of its potential returns per unit of risk. GEE Group is currently generating about 0.01 per unit of risk. If you would invest 8,489 in TriNet Group on September 1, 2024 and sell it today you would earn a total of 854.00 from holding TriNet Group or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TriNet Group vs. GEE Group
Performance |
| Timeline |
| TriNet Group |
| GEE Group |
TriNet and GEE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TriNet and GEE
The main advantage of trading using opposite TriNet and GEE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TriNet position performs unexpectedly, GEE 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 GEE will offset losses from the drop in GEE's long position.| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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