Correlation Between Prudential Qma and Ffuyux

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

By analyzing existing cross correlation between Prudential Qma Small Cap and Ffuyux, you can compare the effects of market volatilities on Prudential Qma and Ffuyux 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 Qma with a short position of Ffuyux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Qma and Ffuyux.

Diversification Opportunities for Prudential Qma and Ffuyux

0.79

Correlation Coefficient

Prudential Qma  Ffuyux

Poor diversification

The 3 months correlation between Prudential and Ffuyux is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Qma Small Cap and Ffuyux in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ffuyux and Prudential Qma 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 Qma Small Cap are associated (or correlated) with Ffuyux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ffuyux has no effect on the direction of Prudential Qma i.e., Prudential Qma and Ffuyux go up and down completely randomly.

Pair Corralation between Prudential Qma and Ffuyux

Assuming the 90 days horizon Prudential Qma Small Cap is expected to generate 1.2 times more return on investment than Ffuyux. However, Prudential Qma is 1.2 times more volatile than Ffuyux. It trades about 0.16 of its potential returns per unit of risk. Ffuyux is currently generating about 0.18 per unit of risk. If you would invest  1,602  in Prudential Qma Small Cap on May 17, 2025 and sell it today you would earn a total of  184.00  from holding Prudential Qma Small Cap or generate 11.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Prudential Qma Small Cap  vs.  Ffuyux

Prudential Qma Small

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Prudential Qma Small Cap are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Prudential Qma may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Ffuyux

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ffuyux are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ffuyux may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Prudential Qma and Ffuyux

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

The idea behind Prudential Qma Small Cap and Ffuyux 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.