Correlation Between TrueBlue and Staffing 360

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

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

Diversification Opportunities for TrueBlue and Staffing 360

0.0

Correlation Coefficient

TrueBlue  Staffing 360

Pay attention - limited upside

The 3 months correlation between TrueBlue and Staffing is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TrueBlue and Staffing 360 Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Staffing 360 Solutions 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 Staffing 360. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Staffing 360 Solutions has no effect on the direction of TrueBlue i.e., TrueBlue and Staffing 360 go up and down completely randomly.

Pair Corralation between TrueBlue and Staffing 360

Considering the 90-day investment horizon TrueBlue is expected to generate 3.79 times less return on investment than Staffing 360. But when comparing it to its historical volatility, TrueBlue is 4.35 times less risky than Staffing 360. It trades about 0.09 of its potential returns per unit of risk. Staffing 360 Solutions is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  156.00  in Staffing 360 Solutions on September 13, 2024 and sell it today you would earn a total of  51.00  from holding Staffing 360 Solutions or generate 32.69% return on investment over 90 days.

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

TrueBlue  vs.  Staffing 360 Solutions

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.

Staffing 360 Solutions

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Staffing 360 Solutions are ranked lower than 6 (%) 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.

Pair Trading with TrueBlue and Staffing 360

The main advantage of trading using opposite TrueBlue and Staffing 360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrueBlue position performs unexpectedly, Staffing 360 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 Staffing 360 will offset losses from the drop in Staffing 360's long position.

The idea behind TrueBlue and Staffing 360 Solutions 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.