Correlation Between TriNet and Kelly Services

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

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

Diversification Opportunities for TriNet and Kelly Services

0.17

Correlation Coefficient

TriNet  Kelly Services

Average diversification

The 3 months correlation between TriNet and Kelly is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding TriNet Group and Kelly Services A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Services A 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 Kelly Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Services A has no effect on the direction of TriNet i.e., TriNet and Kelly Services go up and down completely randomly.

Pair Corralation between TriNet and Kelly Services

Given the investment horizon of 90 days TriNet Group is expected to generate 0.87 times more return on investment than Kelly Services. However, TriNet Group is 1.15 times less risky than Kelly Services. It trades about 0.01 of its potential returns per unit of risk. Kelly Services A is currently generating about -0.14 per unit of risk. If you would invest  9,383  in TriNet Group on September 6, 2024 and sell it today you would earn a total of  8.00  from holding TriNet Group or generate 0.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TriNet Group  vs.  Kelly Services A

TriNet Group

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TriNet Group are ranked lower than 1 (%) 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.

Kelly Services A

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kelly Services A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with TriNet and Kelly Services

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

The idea behind TriNet Group and Kelly Services A 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.