Correlation Between Capital Clean and Chart Industries
Can any of the company-specific risk be diversified away by investing in both Capital Clean and Chart Industries 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 Capital Clean and Chart Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Clean Energy and Chart Industries, you can compare the effects of market volatilities on Capital Clean and Chart Industries 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 Capital Clean with a short position of Chart Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Clean and Chart Industries.
Diversification Opportunities for Capital Clean and Chart Industries
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capital and Chart is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Capital Clean Energy and Chart Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chart Industries and Capital Clean 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 Capital Clean Energy are associated (or correlated) with Chart Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chart Industries has no effect on the direction of Capital Clean i.e., Capital Clean and Chart Industries go up and down completely randomly.
Pair Corralation between Capital Clean and Chart Industries
Given the investment horizon of 90 days Capital Clean Energy is expected to generate 0.42 times more return on investment than Chart Industries. However, Capital Clean Energy is 2.37 times less risky than Chart Industries. It trades about -0.23 of its potential returns per unit of risk. Chart Industries is currently generating about -0.12 per unit of risk. If you would invest 1,955 in Capital Clean Energy on January 10, 2025 and sell it today you would lose (252.00) from holding Capital Clean Energy or give up 12.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Clean Energy vs. Chart Industries
Performance |
| Timeline |
| Capital Clean Energy |
| Chart Industries |
Capital Clean and Chart Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Clean and Chart Industries
The main advantage of trading using opposite Capital Clean and Chart Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Clean position performs unexpectedly, Chart Industries 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 Chart Industries will offset losses from the drop in Chart Industries' long position.| Capital Clean vs. Air Lease | Capital Clean vs. Global Net Lease | Capital Clean vs. Northstar Clean Technologies | Capital Clean vs. Aduro Clean Technologies |
| Chart Industries vs. Crane NXT Co | Chart Industries vs. Donaldson | Chart Industries vs. ITT Inc | Chart Industries vs. Franklin Electric Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stocks Directory Find actively traded stocks across global markets |