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

-0.73

Correlation Coefficient

MillerKnoll  TriNet

Pay attention - limited upside

The 3 months correlation between MillerKnoll and TriNet is -0.73. 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 1.52 times more return on investment than TriNet. However, MillerKnoll is 1.52 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 -0.09 per unit of risk. If you would invest  1,604  in MillerKnoll on May 1, 2025 and sell it today you would earn a total of  358.00  from holding MillerKnoll or generate 22.32% return on investment over 90 days.

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

MillerKnoll  vs.  TriNet Group

MillerKnoll

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MillerKnoll are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward-looking signals, MillerKnoll displayed solid returns over the last few months and may actually be approaching a breakup point.

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 weak 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 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.

The idea behind MillerKnoll 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.