Correlation Between TriNet and Hudson Global

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

By analyzing existing cross correlation between TriNet Group and Hudson Global, you can compare the effects of market volatilities on TriNet and Hudson Global 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 Hudson Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of TriNet and Hudson Global.

Diversification Opportunities for TriNet and Hudson Global

0.26

Correlation Coefficient

TriNet  Hudson Global

Modest diversification

The 3 months correlation between TriNet and Hudson is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding TriNet Group and Hudson Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hudson Global 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 Hudson Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hudson Global has no effect on the direction of TriNet i.e., TriNet and Hudson Global go up and down completely randomly.

Pair Corralation between TriNet and Hudson Global

Given the investment horizon of 90 days TriNet Group is expected to generate 1.09 times more return on investment than Hudson Global. However, TriNet is 1.09 times more volatile than Hudson Global. It trades about 0.0 of its potential returns per unit of risk. Hudson Global is currently generating about 0.0 per unit of risk. If you would invest  9,652  in TriNet Group on September 8, 2024 and sell it today you would lose (183.00) from holding TriNet Group or give up 1.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	97.73%
Values	Daily Returns

TriNet Group  vs.  Hudson Global

TriNet Group

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TriNet Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Hudson Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hudson Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with TriNet and Hudson Global

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

The idea behind TriNet Group and Hudson Global 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.