Correlation Between Upwork and TrueBlue

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

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

Diversification Opportunities for Upwork and TrueBlue

0.81

Correlation Coefficient

Upwork  TrueBlue

Very poor diversification

The 3 months correlation between Upwork and TrueBlue is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Upwork Inc and TrueBlue in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrueBlue and Upwork 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 Upwork Inc 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 Upwork i.e., Upwork and TrueBlue go up and down completely randomly.

Pair Corralation between Upwork and TrueBlue

Given the investment horizon of 90 days Upwork Inc is expected to generate 0.76 times more return on investment than TrueBlue. However, Upwork Inc is 1.32 times less risky than TrueBlue. It trades about -0.1 of its potential returns per unit of risk. TrueBlue is currently generating about -0.12 per unit of risk. If you would invest  1,661  in Upwork Inc on December 28, 2024 and sell it today you would lose (340.00) from holding Upwork Inc or give up 20.47% of portfolio value over 90 days.

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

Upwork Inc  vs.  TrueBlue

Upwork Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Upwork Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

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 Upwork and TrueBlue

The main advantage of trading using opposite Upwork and TrueBlue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upwork 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 Upwork Inc 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 Global Correlations module to find global opportunities by holding instruments from different markets.