Correlation Between Puhui Wealth and Safeplus International

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

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

Diversification Opportunities for Puhui Wealth and Safeplus International

1.0

Correlation Coefficient

Puhui Wealth  Safeplus International

No risk reduction

The 3 months correlation between Puhui and Safeplus is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Puhui Wealth Investment and Safeplus International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safeplus International and Puhui Wealth 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 Puhui Wealth Investment are associated (or correlated) with Safeplus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safeplus International has no effect on the direction of Puhui Wealth i.e., Puhui Wealth and Safeplus International go up and down completely randomly.

Pair Corralation between Puhui Wealth and Safeplus International

If you would invest  0.01  in Safeplus International Holdings on September 18, 2025 and sell it today you would earn a total of  0.00  from holding Safeplus International Holdings or generate 0.0% return on investment over 90 days.

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

Puhui Wealth Investment  vs.  Safeplus International Holding

Puhui Wealth Investment

Risk-Adjusted Performance

Weakest

Over the last 90 days Puhui Wealth Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Puhui Wealth is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Safeplus International

Risk-Adjusted Performance

Weakest

Over the last 90 days Safeplus International Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Safeplus International is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Puhui Wealth and Safeplus International

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

The idea behind Puhui Wealth Investment and Safeplus International Holdings 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.