Correlation Between TrueBlue and Insperity

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

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

Diversification Opportunities for TrueBlue and Insperity

-0.69

Correlation Coefficient

TrueBlue  Insperity

Excellent diversification

The 3 months correlation between TrueBlue and Insperity is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding TrueBlue and Insperity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insperity 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 Insperity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insperity has no effect on the direction of TrueBlue i.e., TrueBlue and Insperity go up and down completely randomly.

Pair Corralation between TrueBlue and Insperity

Considering the 90-day investment horizon TrueBlue is expected to under-perform the Insperity. In addition to that, TrueBlue is 1.36 times more volatile than Insperity. It trades about -0.11 of its total potential returns per unit of risk. Insperity is currently generating about 0.09 per unit of volatility. If you would invest  7,684  in Insperity on December 29, 2024 and sell it today you would earn a total of  1,124  from holding Insperity or generate 14.63% return on investment over 90 days.

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

TrueBlue  vs.  Insperity

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.

Insperity

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Insperity are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Insperity reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TrueBlue and Insperity

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

The idea behind TrueBlue and Insperity 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.