Correlation Between Hunter Small and Pin Oak

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Can any of the company-specific risk be diversified away by investing in both Hunter Small and Pin Oak 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 Hunter Small and Pin Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hunter Small Cap and Pin Oak Equity, you can compare the effects of market volatilities on Hunter Small and Pin Oak 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 Hunter Small with a short position of Pin Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Small and Pin Oak.

Diversification Opportunities for Hunter Small and Pin Oak

0.43
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Hunter and Pin is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Small Cap and Pin Oak Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pin Oak Equity and Hunter Small 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 Hunter Small Cap are associated (or correlated) with Pin Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pin Oak Equity has no effect on the direction of Hunter Small i.e., Hunter Small and Pin Oak go up and down completely randomly.

Pair Corralation between Hunter Small and Pin Oak

Assuming the 90 days horizon Hunter Small Cap is expected to generate 0.73 times more return on investment than Pin Oak. However, Hunter Small Cap is 1.37 times less risky than Pin Oak. It trades about 0.08 of its potential returns per unit of risk. Pin Oak Equity is currently generating about -0.03 per unit of risk. If you would invest  1,238  in Hunter Small Cap on October 5, 2025 and sell it today you would earn a total of  55.00  from holding Hunter Small Cap or generate 4.44% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Hunter Small Cap  vs.  Pin Oak Equity

 Performance 
       Timeline  
Hunter Small Cap 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Hunter Small Cap are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Hunter Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Pin Oak Equity 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Pin Oak Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Pin Oak is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Hunter Small and Pin Oak Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hunter Small and Pin Oak

The main advantage of trading using opposite Hunter Small and Pin Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunter Small position performs unexpectedly, Pin Oak 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 Pin Oak will offset losses from the drop in Pin Oak's long position.
The idea behind Hunter Small Cap and Pin Oak 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.
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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