Correlation Between TrueBlue and Kforce

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

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

Diversification Opportunities for TrueBlue and Kforce

0.82

Correlation Coefficient

TrueBlue  Kforce

Very poor diversification

The 3 months correlation between TrueBlue and Kforce is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding TrueBlue and Kforce Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kforce Inc 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 Kforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kforce Inc has no effect on the direction of TrueBlue i.e., TrueBlue and Kforce go up and down completely randomly.

Pair Corralation between TrueBlue and Kforce

Considering the 90-day investment horizon TrueBlue is expected to under-perform the Kforce. In addition to that, TrueBlue is 2.57 times more volatile than Kforce Inc. It trades about -0.11 of its total potential returns per unit of risk. Kforce Inc is currently generating about -0.12 per unit of volatility. If you would invest  5,611  in Kforce Inc on December 29, 2024 and sell it today you would lose (659.00) from holding Kforce Inc or give up 11.74% of portfolio value over 90 days.

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

TrueBlue  vs.  Kforce Inc

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.

Kforce Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kforce Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with TrueBlue and Kforce

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

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