Correlation Between Staffing 360 and TrueBlue

Can any of the company-specific risk be diversified away by investing in both Staffing 360 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 Staffing 360 and TrueBlue into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Staffing 360 Solutions and TrueBlue, you can compare the effects of market volatilities on Staffing 360 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 Staffing 360 with a short position of TrueBlue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staffing 360 and TrueBlue.

Diversification Opportunities for Staffing 360 and TrueBlue

-0.02

Correlation Coefficient

Staffing 360  TrueBlue

Good diversification

The 3 months correlation between Staffing and TrueBlue is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Staffing 360 Solutions and TrueBlue in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrueBlue and Staffing 360 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 Staffing 360 Solutions 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 Staffing 360 i.e., Staffing 360 and TrueBlue go up and down completely randomly.

Pair Corralation between Staffing 360 and TrueBlue

Given the investment horizon of 90 days Staffing 360 Solutions is expected to generate 4.39 times more return on investment than TrueBlue. However, Staffing 360 is 4.39 times more volatile than TrueBlue. It trades about 0.1 of its potential returns per unit of risk. TrueBlue is currently generating about 0.09 per unit of risk. If you would invest  140.00  in Staffing 360 Solutions on September 12, 2024 and sell it today you would earn a total of  76.00  from holding Staffing 360 Solutions or generate 54.29% return on investment over 90 days.

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

Staffing 360 Solutions  vs.  TrueBlue

Staffing 360 Solutions

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Staffing 360 Solutions are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Staffing 360 reported solid returns over the last few months and may actually be approaching a breakup point.

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 inconsistent fundamental drivers, TrueBlue demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Staffing 360 and TrueBlue

The main advantage of trading using opposite Staffing 360 and TrueBlue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staffing 360 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 Staffing 360 Solutions 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.