Correlation Between MediaAlpha and TriNet

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

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

Diversification Opportunities for MediaAlpha and TriNet

0.16

Correlation Coefficient

MediaAlpha  TriNet

Average diversification

The 3 months correlation between MediaAlpha and TriNet is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding MediaAlpha and TriNet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriNet Group and MediaAlpha 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 MediaAlpha 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 MediaAlpha i.e., MediaAlpha and TriNet go up and down completely randomly.

Pair Corralation between MediaAlpha and TriNet

Considering the 90-day investment horizon MediaAlpha is expected to generate 1.58 times more return on investment than TriNet. However, MediaAlpha is 1.58 times more volatile than TriNet Group. It trades about 0.0 of its potential returns per unit of risk. TriNet Group is currently generating about -0.21 per unit of risk. If you would invest  1,033  in MediaAlpha on May 18, 2025 and sell it today you would lose (34.00) from holding MediaAlpha or give up 3.29% of portfolio value over 90 days.

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

MediaAlpha  vs.  TriNet Group

MediaAlpha

Risk-Adjusted Performance

Weakest

Over the last 90 days MediaAlpha has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, MediaAlpha is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

TriNet Group

Risk-Adjusted Performance

Weakest

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 September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with MediaAlpha and TriNet

The main advantage of trading using opposite MediaAlpha and TriNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaAlpha 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 MediaAlpha 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.