Correlation Between CSW Industrials, and Chart Industries

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

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

Diversification Opportunities for CSW Industrials, and Chart Industries

-0.45

Correlation Coefficient

CSW Industrials,  Chart Industries

Very good diversification

The 3 months correlation between CSW and Chart is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding CSW Industrials, and Chart Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chart Industries and CSW Industrials, 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 CSW Industrials, 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 CSW Industrials, i.e., CSW Industrials, and Chart Industries go up and down completely randomly.

Pair Corralation between CSW Industrials, and Chart Industries

Considering the 90-day investment horizon CSW Industrials, is expected to under-perform the Chart Industries. In addition to that, CSW Industrials, is 8.33 times more volatile than Chart Industries. It trades about -0.02 of its total potential returns per unit of risk. Chart Industries is currently generating about 0.16 per unit of volatility. If you would invest  19,873  in Chart Industries on August 17, 2025 and sell it today you would earn a total of  481.00  from holding Chart Industries or generate 2.42% return on investment over 90 days.

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

CSW Industrials,  vs.  Chart Industries

CSW Industrials,

Risk-Adjusted Performance

Weakest

Over the last 90 days CSW Industrials, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, CSW Industrials, is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Chart Industries

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Chart Industries are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, Chart Industries is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with CSW Industrials, and Chart Industries

The main advantage of trading using opposite CSW Industrials, and Chart Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSW Industrials, 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 CSW Industrials, 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.