Correlation Between Chart Industries and Solanbridge
Can any of the company-specific risk be diversified away by investing in both Chart Industries and Solanbridge 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 Solanbridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chart Industries and Solanbridge Group, you can compare the effects of market volatilities on Chart Industries and Solanbridge 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 Solanbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chart Industries and Solanbridge.
Diversification Opportunities for Chart Industries and Solanbridge
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chart and Solanbridge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chart Industries and Solanbridge Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solanbridge Group 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 Solanbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solanbridge Group has no effect on the direction of Chart Industries i.e., Chart Industries and Solanbridge go up and down completely randomly.
Pair Corralation between Chart Industries and Solanbridge
Given the investment horizon of 90 days Chart Industries is expected to generate 0.76 times more return on investment than Solanbridge. However, Chart Industries is 1.32 times less risky than Solanbridge. It trades about 0.04 of its potential returns per unit of risk. Solanbridge Group is currently generating about -0.05 per unit of risk. If you would invest 12,300 in Chart Industries on August 31, 2024 and sell it today you would earn a total of 7,025 from holding Chart Industries or generate 57.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Chart Industries vs. Solanbridge Group
Performance |
| Timeline |
| Chart Industries |
| Solanbridge Group |
Chart Industries and Solanbridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chart Industries and Solanbridge
The main advantage of trading using opposite Chart Industries and Solanbridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chart Industries position performs unexpectedly, Solanbridge 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 Solanbridge will offset losses from the drop in Solanbridge's long position.| Chart Industries vs. Crane NXT Co | Chart Industries vs. Donaldson | Chart Industries vs. ITT Inc | Chart Industries vs. Franklin Electric Co |
| Solanbridge vs. Emerson Electric | Solanbridge vs. Primoris Services | Solanbridge vs. Newpark Resources | Solanbridge vs. Chart Industries |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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