Correlation Between TrueBlue and Randstad Holdings

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

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

Diversification Opportunities for TrueBlue and Randstad Holdings

0.74

Correlation Coefficient

TrueBlue  Randstad Holdings

Poor diversification

The 3 months correlation between TrueBlue and Randstad is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding TrueBlue and Randstad Holdings NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Randstad Holdings 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 Randstad Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Randstad Holdings has no effect on the direction of TrueBlue i.e., TrueBlue and Randstad Holdings go up and down completely randomly.

Pair Corralation between TrueBlue and Randstad Holdings

Considering the 90-day investment horizon TrueBlue is expected to generate 2.62 times more return on investment than Randstad Holdings. However, TrueBlue is 2.62 times more volatile than Randstad Holdings NV. It trades about 0.19 of its potential returns per unit of risk. Randstad Holdings NV is currently generating about 0.16 per unit of risk. If you would invest  398.00  in TrueBlue on May 7, 2025 and sell it today you would earn a total of  236.00  from holding TrueBlue or generate 59.3% return on investment over 90 days.

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

TrueBlue  vs.  Randstad Holdings NV

TrueBlue

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TrueBlue are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady fundamental drivers, TrueBlue demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Randstad Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Randstad Holdings NV are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile forward-looking indicators, Randstad Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TrueBlue and Randstad Holdings

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

The idea behind TrueBlue and Randstad Holdings NV 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.

Check out your portfolio center.

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..