Correlation Between Yelp and TriNet

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

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

Diversification Opportunities for Yelp and TriNet

0.85

Correlation Coefficient

Yelp  TriNet

Very poor diversification

The 3 months correlation between Yelp and TriNet is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Yelp Inc and TriNet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriNet Group and Yelp 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 Yelp Inc 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 Yelp i.e., Yelp and TriNet go up and down completely randomly.

Pair Corralation between Yelp and TriNet

Given the investment horizon of 90 days Yelp Inc is expected to generate 0.93 times more return on investment than TriNet. However, Yelp Inc is 1.08 times less risky than TriNet. It trades about -0.18 of its potential returns per unit of risk. TriNet Group is currently generating about -0.2 per unit of risk. If you would invest  3,859  in Yelp Inc on May 20, 2025 and sell it today you would lose (756.00) from holding Yelp Inc or give up 19.59% of portfolio value over 90 days.

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

Yelp Inc  vs.  TriNet Group

Yelp Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Yelp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail 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 Yelp and TriNet

The main advantage of trading using opposite Yelp and TriNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yelp 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 Yelp Inc 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.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.