Correlation Between Chart Industries and Conair

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

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

Diversification Opportunities for Chart Industries and Conair

0.34

Correlation Coefficient

Chart Industries  Conair

Weak diversification

The 3 months correlation between Chart and Conair is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Chart Industries and Conair in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conair 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 Conair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conair has no effect on the direction of Chart Industries i.e., Chart Industries and Conair go up and down completely randomly.

Pair Corralation between Chart Industries and Conair

Given the investment horizon of 90 days Chart Industries is expected to generate 1.65 times more return on investment than Conair. However, Chart Industries is 1.65 times more volatile than Conair. It trades about -0.06 of its potential returns per unit of risk. Conair is currently generating about -0.17 per unit of risk. If you would invest  18,483  in Chart Industries on December 20, 2024 and sell it today you would lose (2,998) from holding Chart Industries or give up 16.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.77%
Values	Daily Returns

Chart Industries  vs.  Conair

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. In spite of uncertain performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Conair

Risk-Adjusted Performance

Very Weak

Over the last 90 days Conair has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical and fundamental indicators 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.

Pair Trading with Chart Industries and Conair

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

The idea behind Chart Industries and Conair 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.