Correlation Between TrueBlue and Hire Technologies

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

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

Diversification Opportunities for TrueBlue and Hire Technologies

0.0

Correlation Coefficient

TrueBlue  Hire Technologies

Pay attention - limited upside

The 3 months correlation between TrueBlue and Hire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TrueBlue and Hire Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hire Technologies and TrueBlue 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 TrueBlue are associated (or correlated) with Hire Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hire Technologies has no effect on the direction of TrueBlue i.e., TrueBlue and Hire Technologies go up and down completely randomly.

Pair Corralation between TrueBlue and Hire Technologies

Considering the 90-day investment horizon TrueBlue is expected to generate 0.55 times more return on investment than Hire Technologies. However, TrueBlue is 1.8 times less risky than Hire Technologies. It trades about -0.04 of its potential returns per unit of risk. Hire Technologies is currently generating about -0.04 per unit of risk. If you would invest  1,891  in TrueBlue on September 12, 2024 and sell it today you would lose (1,013) from holding TrueBlue or give up 53.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

TrueBlue  vs.  Hire Technologies

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.

Hire Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hire Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Hire Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with TrueBlue and Hire Technologies

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

The idea behind TrueBlue and Hire Technologies 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.