Correlation Between Travelers Companies and TriNet

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

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

Diversification Opportunities for Travelers Companies and TriNet

-0.38

Correlation Coefficient

Travelers Companies  TriNet

Very good diversification

The 3 months correlation between Travelers and TriNet is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and TriNet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriNet Group and Travelers Companies 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 The Travelers Companies 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 Travelers Companies i.e., Travelers Companies and TriNet go up and down completely randomly.

Pair Corralation between Travelers Companies and TriNet

Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.53 times more return on investment than TriNet. However, The Travelers Companies is 1.89 times less risky than TriNet. It trades about 0.11 of its potential returns per unit of risk. TriNet Group is currently generating about -0.12 per unit of risk. If you would invest  26,980  in The Travelers Companies on August 26, 2025 and sell it today you would earn a total of  2,104  from holding The Travelers Companies or generate 7.8% return on investment over 90 days.

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

The Travelers Companies  vs.  TriNet Group

The Travelers Companies

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in The Travelers Companies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Travelers Companies may actually be approaching a critical reversion point that can send shares even higher in December 2025.

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 December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Travelers Companies and TriNet

The main advantage of trading using opposite Travelers Companies and TriNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies 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 The Travelers Companies 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 Transaction History module to view history of all your transactions and understand their impact on performance.