Correlation Between TrueBlue and Robert Half

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

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

Diversification Opportunities for TrueBlue and Robert Half

0.37

Correlation Coefficient

TrueBlue  Robert Half

Weak diversification

The 3 months correlation between TrueBlue and Robert is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding TrueBlue and Robert Half International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robert Half International 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 Robert Half. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robert Half International has no effect on the direction of TrueBlue i.e., TrueBlue and Robert Half go up and down completely randomly.

Pair Corralation between TrueBlue and Robert Half

Considering the 90-day investment horizon TrueBlue is expected to generate 2.27 times more return on investment than Robert Half. However, TrueBlue is 2.27 times more volatile than Robert Half International. It trades about -0.08 of its potential returns per unit of risk. Robert Half International is currently generating about -0.22 per unit of risk. If you would invest  752.00  in TrueBlue on November 28, 2024 and sell it today you would lose (140.00) from holding TrueBlue or give up 18.62% of portfolio value over 90 days.

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

TrueBlue  vs.  Robert Half International

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 March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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 March 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with TrueBlue and Robert Half

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

The idea behind TrueBlue and Robert Half International 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..