Correlation Between KBR and TriNet

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

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

Diversification Opportunities for KBR and TriNet

0.85

Correlation Coefficient

KBR  TriNet

Very poor diversification

The 3 months correlation between KBR and TriNet is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding KBR Inc and TriNet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriNet Group and KBR 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 KBR Inc 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 KBR i.e., KBR and TriNet go up and down completely randomly.

Pair Corralation between KBR and TriNet

Considering the 90-day investment horizon KBR Inc is expected to generate 1.05 times more return on investment than TriNet. However, KBR is 1.05 times more volatile than TriNet Group. It trades about -0.11 of its potential returns per unit of risk. TriNet Group is currently generating about -0.12 per unit of risk. If you would invest  5,192  in KBR Inc on May 2, 2025 and sell it today you would lose (640.00) from holding KBR Inc or give up 12.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

KBR Inc  vs.  TriNet Group

KBR Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days KBR Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest sluggish performance, the Stock's fundamental drivers remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail 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 weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with KBR and TriNet

The main advantage of trading using opposite KBR and TriNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KBR 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 KBR Inc 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.