Correlation Between Puhui Wealth and Washington Federal

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Can any of the company-specific risk be diversified away by investing in both Puhui Wealth and Washington Federal 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 Washington Federal 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 Washington Federal, you can compare the effects of market volatilities on Puhui Wealth and Washington Federal 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 Washington Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puhui Wealth and Washington Federal.

Diversification Opportunities for Puhui Wealth and Washington Federal

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Puhui and Washington is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Puhui Wealth Investment and Washington Federal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Washington Federal 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 Washington Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Washington Federal has no effect on the direction of Puhui Wealth i.e., Puhui Wealth and Washington Federal go up and down completely randomly.

Pair Corralation between Puhui Wealth and Washington Federal

If you would invest  3,124  in Washington Federal on August 30, 2025 and sell it today you would earn a total of  103.00  from holding Washington Federal or generate 3.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Puhui Wealth Investment  vs.  Washington Federal

 Performance 
       Timeline  
Puhui Wealth Investment 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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 current stock price disturbance, may contribute to mid-run losses for the stockholders.
Washington Federal 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Washington Federal are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Washington Federal is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Puhui Wealth and Washington Federal Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Puhui Wealth and Washington Federal

The main advantage of trading using opposite Puhui Wealth and Washington Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puhui Wealth position performs unexpectedly, Washington Federal 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 Washington Federal will offset losses from the drop in Washington Federal's long position.
The idea behind Puhui Wealth Investment and Washington Federal 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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