Correlation Between Randstad Holdings and TrueBlue

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

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

Diversification Opportunities for Randstad Holdings and TrueBlue

-0.4

Correlation Coefficient

Randstad Holdings  TrueBlue

Very good diversification

The 3 months correlation between Randstad and TrueBlue is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Randstad Holdings NV and TrueBlue in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrueBlue and Randstad Holdings 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 Randstad Holdings NV 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 Randstad Holdings i.e., Randstad Holdings and TrueBlue go up and down completely randomly.

Pair Corralation between Randstad Holdings and TrueBlue

Assuming the 90 days horizon Randstad Holdings NV is expected to generate 0.59 times more return on investment than TrueBlue. However, Randstad Holdings NV is 1.7 times less risky than TrueBlue. It trades about 0.06 of its potential returns per unit of risk. TrueBlue is currently generating about -0.12 per unit of risk. If you would invest  2,086  in Randstad Holdings NV on December 30, 2024 and sell it today you would earn a total of  156.00  from holding Randstad Holdings NV or generate 7.48% return on investment over 90 days.

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

Randstad Holdings NV  vs.  TrueBlue

Randstad Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Randstad Holdings NV are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile forward-looking indicators, Randstad Holdings may actually be approaching a critical reversion point that can send shares even higher in April 2025.

TrueBlue

Risk-Adjusted Performance

Very Weak

Over the last 90 days TrueBlue has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Randstad Holdings and TrueBlue

The main advantage of trading using opposite Randstad Holdings and TrueBlue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Randstad Holdings 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 Randstad Holdings NV 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.