Correlation Between MillerKnoll and TriNet
Can any of the company-specific risk be diversified away by investing in both MillerKnoll 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 MillerKnoll and TriNet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MillerKnoll and TriNet Group, you can compare the effects of market volatilities on MillerKnoll 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 MillerKnoll with a short position of TriNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of MillerKnoll and TriNet.
Diversification Opportunities for MillerKnoll and TriNet
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MillerKnoll and TriNet is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding MillerKnoll and TriNet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriNet Group and MillerKnoll 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 MillerKnoll 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 MillerKnoll i.e., MillerKnoll and TriNet go up and down completely randomly.
Pair Corralation between MillerKnoll and TriNet
Given the investment horizon of 90 days MillerKnoll is expected to generate 1.57 times more return on investment than TriNet. However, MillerKnoll is 1.57 times more volatile than TriNet Group. It trades about 0.13 of its potential returns per unit of risk. TriNet Group is currently generating about -0.14 per unit of risk. If you would invest 1,626 in MillerKnoll on April 25, 2025 and sell it today you would earn a total of 368.00 from holding MillerKnoll or generate 22.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MillerKnoll vs. TriNet Group
Performance |
Timeline |
MillerKnoll |
TriNet Group |
MillerKnoll and TriNet Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MillerKnoll and TriNet
The main advantage of trading using opposite MillerKnoll and TriNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MillerKnoll 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.MillerKnoll vs. La Z Boy Incorporated | MillerKnoll vs. MasterBrand | MillerKnoll vs. Bassett Furniture Industries | MillerKnoll vs. American Woodmark |
Check out your portfolio center.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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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