Correlation Between TriNet and MediaAlpha

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

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

Diversification Opportunities for TriNet and MediaAlpha

0.16

Correlation Coefficient

TriNet  MediaAlpha

Average diversification

The 3 months correlation between TriNet and MediaAlpha is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding TriNet Group and MediaAlpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaAlpha and TriNet 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 TriNet Group are associated (or correlated) with MediaAlpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediaAlpha has no effect on the direction of TriNet i.e., TriNet and MediaAlpha go up and down completely randomly.

Pair Corralation between TriNet and MediaAlpha

Given the investment horizon of 90 days TriNet Group is expected to under-perform the MediaAlpha. But the stock apears to be less risky and, when comparing its historical volatility, TriNet Group is 1.58 times less risky than MediaAlpha. The stock trades about -0.21 of its potential returns per unit of risk. The MediaAlpha is currently generating about 0.0 of returns per unit of risk over similar time horizon. 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

TriNet Group  vs.  MediaAlpha

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.

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.

Pair Trading with TriNet and MediaAlpha

The main advantage of trading using opposite TriNet and MediaAlpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TriNet position performs unexpectedly, MediaAlpha 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 MediaAlpha will offset losses from the drop in MediaAlpha's long position.

The idea behind TriNet Group and MediaAlpha 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.