Correlation Between Chart Industries and Chimerix
Can any of the company-specific risk be diversified away by investing in both Chart Industries and Chimerix 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 Chart Industries and Chimerix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chart Industries and Chimerix, you can compare the effects of market volatilities on Chart Industries and Chimerix 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 Chart Industries with a short position of Chimerix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chart Industries and Chimerix.
Diversification Opportunities for Chart Industries and Chimerix
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chart and Chimerix is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Chart Industries and Chimerix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimerix and Chart Industries 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 Chart Industries are associated (or correlated) with Chimerix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimerix has no effect on the direction of Chart Industries i.e., Chart Industries and Chimerix go up and down completely randomly.
Pair Corralation between Chart Industries and Chimerix
Given the investment horizon of 90 days Chart Industries is expected to generate 1.06 times more return on investment than Chimerix. However, Chart Industries is 1.06 times more volatile than Chimerix. It trades about 0.05 of its potential returns per unit of risk. Chimerix is currently generating about -0.03 per unit of risk. If you would invest 12,056 in Chart Industries on September 3, 2024 and sell it today you would earn a total of 7,269 from holding Chart Industries or generate 60.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chart Industries vs. Chimerix
Performance |
| Timeline |
| Chart Industries |
| Chimerix |
Chart Industries and Chimerix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chart Industries and Chimerix
The main advantage of trading using opposite Chart Industries and Chimerix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chart Industries position performs unexpectedly, Chimerix 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 Chimerix will offset losses from the drop in Chimerix's long position.| Chart Industries vs. Crane NXT Co | Chart Industries vs. Donaldson | Chart Industries vs. ITT Inc | Chart Industries vs. Franklin Electric Co |
| Chimerix vs. Assembly Biosciences | Chimerix vs. Spero Therapeutics | Chimerix vs. Achilles Therapeutics PLC | Chimerix vs. Instil Bio |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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