Correlation Between Prudential Utility and Mfs E

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

By analyzing existing cross correlation between Prudential Utility Fund and Mfs E Equity, you can compare the effects of market volatilities on Prudential Utility and Mfs E 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 Prudential Utility with a short position of Mfs E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Utility and Mfs E.

Diversification Opportunities for Prudential Utility and Mfs E

-0.05

Correlation Coefficient

Prudential Utility  Mfs E

Good diversification

The 3 months correlation between Prudential and Mfs is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Utility Fund and Mfs E Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs E Equity and Prudential Utility 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 Prudential Utility Fund are associated (or correlated) with Mfs E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs E Equity has no effect on the direction of Prudential Utility i.e., Prudential Utility and Mfs E go up and down completely randomly.

Pair Corralation between Prudential Utility and Mfs E

Assuming the 90 days horizon Prudential Utility is expected to generate 1.08 times less return on investment than Mfs E. In addition to that, Prudential Utility is 1.09 times more volatile than Mfs E Equity. It trades about 0.05 of its total potential returns per unit of risk. Mfs E Equity is currently generating about 0.06 per unit of volatility. If you would invest  5,583  in Mfs E Equity on September 16, 2025 and sell it today you would earn a total of  167.00  from holding Mfs E Equity or generate 2.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Prudential Utility Fund  vs.  Mfs E Equity

Prudential Utility

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Prudential Utility Fund are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Prudential Utility is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mfs E Equity

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Mfs E Equity are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mfs E is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Prudential Utility and Mfs E

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

The idea behind Prudential Utility Fund and Mfs E Equity 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.