Correlation Between TrueBlue and Surf Air

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Can any of the company-specific risk be diversified away by investing in both TrueBlue and Surf Air 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 Surf Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TrueBlue and Surf Air Mobility, you can compare the effects of market volatilities on TrueBlue and Surf Air 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 Surf Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of TrueBlue and Surf Air.

Diversification Opportunities for TrueBlue and Surf Air

0.5
  Correlation Coefficient

Very weak diversification

The 3 months correlation between TrueBlue and Surf is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding TrueBlue and Surf Air Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surf Air Mobility 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 Surf Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surf Air Mobility has no effect on the direction of TrueBlue i.e., TrueBlue and Surf Air go up and down completely randomly.

Pair Corralation between TrueBlue and Surf Air

Considering the 90-day investment horizon TrueBlue is expected to under-perform the Surf Air. But the stock apears to be less risky and, when comparing its historical volatility, TrueBlue is 2.81 times less risky than Surf Air. The stock trades about -0.04 of its potential returns per unit of risk. The Surf Air Mobility is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  504.00  in Surf Air Mobility on August 17, 2025 and sell it today you would lose (241.00) from holding Surf Air Mobility or give up 47.82% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

TrueBlue  vs.  Surf Air Mobility

 Performance 
       Timeline  
TrueBlue 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days TrueBlue has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
Surf Air Mobility 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Surf Air Mobility has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

TrueBlue and Surf Air Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with TrueBlue and Surf Air

The main advantage of trading using opposite TrueBlue and Surf Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrueBlue position performs unexpectedly, Surf Air 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 Surf Air will offset losses from the drop in Surf Air's long position.
The idea behind TrueBlue and Surf Air Mobility 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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