Correlation Between Perion Network and TriNet

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

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

Diversification Opportunities for Perion Network and TriNet

0.08

Correlation Coefficient

Perion Network  TriNet

Significant diversification

The 3 months correlation between Perion and TriNet is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Perion Network and TriNet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriNet Group and Perion Network 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 Perion Network 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 Perion Network i.e., Perion Network and TriNet go up and down completely randomly.

Pair Corralation between Perion Network and TriNet

Given the investment horizon of 90 days Perion Network is expected to generate 1.3 times more return on investment than TriNet. However, Perion Network is 1.3 times more volatile than TriNet Group. It trades about -0.1 of its potential returns per unit of risk. TriNet Group is currently generating about -0.21 per unit of risk. If you would invest  1,094  in Perion Network on May 19, 2025 and sell it today you would lose (179.00) from holding Perion Network or give up 16.36% of portfolio value over 90 days.

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

Perion Network  vs.  TriNet Group

Perion Network

Risk-Adjusted Performance

Weakest

Over the last 90 days Perion Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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 Perion Network and TriNet

The main advantage of trading using opposite Perion Network and TriNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perion Network 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 Perion Network 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.