Correlation Between GEE and TrueBlue

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

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

Diversification Opportunities for GEE and TrueBlue

0.04

Correlation Coefficient

GEE  TrueBlue

Significant diversification

The 3 months correlation between GEE and TrueBlue is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding GEE Group and TrueBlue in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrueBlue and GEE 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 GEE Group are associated (or correlated) with TrueBlue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TrueBlue has no effect on the direction of GEE i.e., GEE and TrueBlue go up and down completely randomly.

Pair Corralation between GEE and TrueBlue

Considering the 90-day investment horizon GEE is expected to generate 2.49 times less return on investment than TrueBlue. In addition to that, GEE is 1.08 times more volatile than TrueBlue. It trades about 0.04 of its total potential returns per unit of risk. TrueBlue is currently generating about 0.1 per unit of volatility. If you would invest  754.00  in TrueBlue on September 14, 2024 and sell it today you would earn a total of  129.00  from holding TrueBlue or generate 17.11% return on investment over 90 days.

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

GEE Group  vs.  TrueBlue

GEE Group

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GEE Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, GEE may actually be approaching a critical reversion point that can send shares even higher in January 2025.

TrueBlue

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TrueBlue are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental drivers, TrueBlue demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GEE and TrueBlue

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

The idea behind GEE Group and TrueBlue 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..