Correlation Between CITIC Heavy and Chart Industries

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

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

Diversification Opportunities for CITIC Heavy and Chart Industries

0.55

Correlation Coefficient

CITIC Heavy  Chart Industries

Very weak diversification

The 3 months correlation between CITIC and Chart is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Heavy Industries and Chart Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chart Industries and CITIC Heavy 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 CITIC Heavy Industries 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 CITIC Heavy i.e., CITIC Heavy and Chart Industries go up and down completely randomly.

Pair Corralation between CITIC Heavy and Chart Industries

Assuming the 90 days trading horizon CITIC Heavy Industries is expected to generate 1.51 times more return on investment than Chart Industries. However, CITIC Heavy is 1.51 times more volatile than Chart Industries. It trades about 0.28 of its potential returns per unit of risk. Chart Industries is currently generating about 0.13 per unit of risk. If you would invest  476.00  in CITIC Heavy Industries on July 25, 2025 and sell it today you would earn a total of  283.00  from holding CITIC Heavy Industries or generate 59.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	92.06%
Values	Daily Returns

CITIC Heavy Industries  vs.  Chart Industries

CITIC Heavy Industries

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Heavy Industries are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, CITIC Heavy sustained solid returns over the last few months and may actually be approaching a breakup point.

Chart Industries

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Chart Industries are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, Chart Industries unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CITIC Heavy and Chart Industries

The main advantage of trading using opposite CITIC Heavy and Chart Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Heavy 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.

The idea behind CITIC Heavy Industries and Chart Industries 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.