Correlation Between Robert Half and TrueBlue

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

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

Diversification Opportunities for Robert Half and TrueBlue

0.87

Correlation Coefficient

Robert Half  TrueBlue

Very poor diversification

The 3 months correlation between Robert and TrueBlue is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Robert Half International and TrueBlue in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrueBlue and Robert Half 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 Robert Half International 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 Robert Half i.e., Robert Half and TrueBlue go up and down completely randomly.

Pair Corralation between Robert Half and TrueBlue

Considering the 90-day investment horizon Robert Half International is expected to generate 0.44 times more return on investment than TrueBlue. However, Robert Half International is 2.28 times less risky than TrueBlue. It trades about -0.21 of its potential returns per unit of risk. TrueBlue is currently generating about -0.11 per unit of risk. If you would invest  6,965  in Robert Half International on December 29, 2024 and sell it today you would lose (1,461) from holding Robert Half International or give up 20.98% of portfolio value over 90 days.

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

Robert Half International  vs.  TrueBlue

Robert Half International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Robert Half International 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 technical indicators 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.

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 Robert Half and TrueBlue

The main advantage of trading using opposite Robert Half and TrueBlue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robert Half 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 Robert Half International 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.