Correlation Between Safeplus International and OFS Capital

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

By analyzing existing cross correlation between Safeplus International Holdings and OFS Capital Corp, you can compare the effects of market volatilities on Safeplus International and OFS Capital 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 Safeplus International with a short position of OFS Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safeplus International and OFS Capital.

Diversification Opportunities for Safeplus International and OFS Capital

0.03

Correlation Coefficient

Safeplus International  OFS Capital

Significant diversification

The 3 months correlation between Safeplus and OFS is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Safeplus International Holding and OFS Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFS Capital Corp and Safeplus International 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 Safeplus International Holdings are associated (or correlated) with OFS Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFS Capital Corp has no effect on the direction of Safeplus International i.e., Safeplus International and OFS Capital go up and down completely randomly.

Pair Corralation between Safeplus International and OFS Capital

Given the investment horizon of 90 days Safeplus International Holdings is expected to generate 0.76 times more return on investment than OFS Capital. However, Safeplus International Holdings is 1.31 times less risky than OFS Capital. It trades about 0.09 of its potential returns per unit of risk. OFS Capital Corp is currently generating about -0.19 per unit of risk. If you would invest  1,623  in Safeplus International Holdings on July 14, 2025 and sell it today you would earn a total of  80.00  from holding Safeplus International Holdings or generate 4.93% return on investment over 90 days.

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

Safeplus International Holding  vs.  OFS Capital Corp

Safeplus International

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Safeplus International Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Safeplus International is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

OFS Capital Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days OFS Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Safeplus International and OFS Capital

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

The idea behind Safeplus International Holdings and OFS Capital Corp 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 Commodity Directory module to find actively traded commodities issued by global exchanges.