Correlation Between Chart Industries and Marimaca Copper

Can any of the company-specific risk be diversified away by investing in both Chart Industries and Marimaca Copper 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 Marimaca Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chart Industries and Marimaca Copper Corp, you can compare the effects of market volatilities on Chart Industries and Marimaca Copper 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 Marimaca Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chart Industries and Marimaca Copper.

Diversification Opportunities for Chart Industries and Marimaca Copper

-0.28

Correlation Coefficient

Chart Industries  Marimaca Copper

Very good diversification

The 3 months correlation between Chart and Marimaca is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Chart Industries and Marimaca Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimaca Copper Corp 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 Marimaca Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimaca Copper Corp has no effect on the direction of Chart Industries i.e., Chart Industries and Marimaca Copper go up and down completely randomly.

Pair Corralation between Chart Industries and Marimaca Copper

Assuming the 90 days trading horizon Chart Industries is expected to under-perform the Marimaca Copper. But the preferred stock apears to be less risky and, when comparing its historical volatility, Chart Industries is 1.06 times less risky than Marimaca Copper. The preferred stock trades about -0.07 of its potential returns per unit of risk. The Marimaca Copper Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  311.00  in Marimaca Copper Corp on December 22, 2024 and sell it today you would earn a total of  77.00  from holding Marimaca Copper Corp or generate 24.76% return on investment over 90 days.

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

Chart Industries  vs.  Marimaca Copper Corp

Chart Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chart Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Preferred Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Marimaca Copper Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Marimaca Copper Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward indicators, Marimaca Copper reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Chart Industries and Marimaca Copper

The main advantage of trading using opposite Chart Industries and Marimaca Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chart Industries position performs unexpectedly, Marimaca Copper 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 Marimaca Copper will offset losses from the drop in Marimaca Copper's long position.

The idea behind Chart Industries and Marimaca Copper Corp 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.