Correlation Between Loomis Sayles and Pin Oak

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

By analyzing existing cross correlation between Loomis Sayles Growth and Pin Oak Equity, you can compare the effects of market volatilities on Loomis Sayles 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 Loomis Sayles with a short position of Pin Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loomis Sayles and Pin Oak.

Diversification Opportunities for Loomis Sayles and Pin Oak

0.66

Correlation Coefficient

Loomis Sayles  Pin Oak

Poor diversification

The 3 months correlation between Loomis and Pin is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Loomis Sayles Growth 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 Loomis Sayles 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 Loomis Sayles Growth 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 Loomis Sayles i.e., Loomis Sayles and Pin Oak go up and down completely randomly.

Pair Corralation between Loomis Sayles and Pin Oak

Assuming the 90 days horizon Loomis Sayles Growth is expected to generate 0.86 times more return on investment than Pin Oak. However, Loomis Sayles Growth is 1.16 times less risky than Pin Oak. It trades about 0.06 of its potential returns per unit of risk. Pin Oak Equity is currently generating about -0.04 per unit of risk. If you would invest  2,746  in Loomis Sayles Growth on September 29, 2024 and sell it today you would earn a total of  282.00  from holding Loomis Sayles Growth or generate 10.27% return on investment over 90 days.

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

Loomis Sayles Growth  vs.  Pin Oak Equity

Loomis Sayles Growth

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Loomis Sayles Growth are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Loomis Sayles may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pin Oak Equity

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Pin Oak Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Loomis Sayles and Pin Oak

The main advantage of trading using opposite Loomis Sayles and Pin Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loomis Sayles 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 Loomis Sayles Growth 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.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.