Correlation Between Mastech Holdings and TriNet

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

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

Diversification Opportunities for Mastech Holdings and TriNet

0.68

Correlation Coefficient

Mastech Holdings  TriNet

Poor diversification

The 3 months correlation between Mastech and TriNet is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mastech Holdings and TriNet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriNet Group and Mastech Holdings 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 Mastech Holdings 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 Mastech Holdings i.e., Mastech Holdings and TriNet go up and down completely randomly.

Pair Corralation between Mastech Holdings and TriNet

Considering the 90-day investment horizon Mastech Holdings is expected to under-perform the TriNet. In addition to that, Mastech Holdings is 1.54 times more volatile than TriNet Group. It trades about -0.11 of its total potential returns per unit of risk. TriNet Group is currently generating about -0.06 per unit of volatility. 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

Mastech Holdings  vs.  TriNet Group

Mastech Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mastech Holdings 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 technical indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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 Mastech Holdings and TriNet

The main advantage of trading using opposite Mastech Holdings and TriNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mastech Holdings 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 Mastech Holdings 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..