Correlation Between Hudson Global and TriNet

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

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

Diversification Opportunities for Hudson Global and TriNet

0.65

Correlation Coefficient

Hudson Global  TriNet

Poor diversification

The 3 months correlation between Hudson and TriNet is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Global and TriNet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriNet Group and Hudson Global 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 Hudson Global 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 Hudson Global i.e., Hudson Global and TriNet go up and down completely randomly.

Pair Corralation between Hudson Global and TriNet

Given the investment horizon of 90 days Hudson Global is expected to under-perform the TriNet. But the stock apears to be less risky and, when comparing its historical volatility, Hudson Global is 1.34 times less risky than TriNet. The stock trades about -0.12 of its potential returns per unit of risk. The TriNet Group is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  9,043  in TriNet Group on December 29, 2024 and sell it today you would lose (1,137) from holding TriNet Group or give up 12.57% of portfolio value over 90 days.

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

Hudson Global  vs.  TriNet Group

Hudson Global

Risk-Adjusted Performance

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 inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

TriNet Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days TriNet Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Hudson Global and TriNet

The main advantage of trading using opposite Hudson Global and TriNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Global 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.

The idea behind Hudson Global and TriNet Group 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.