Correlation Between Haynes International and Chart Industries
Can any of the company-specific risk be diversified away by investing in both Haynes International 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 Haynes International and Chart Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haynes International and Chart Industries, you can compare the effects of market volatilities on Haynes International 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 Haynes International with a short position of Chart Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haynes International and Chart Industries.
Diversification Opportunities for Haynes International and Chart Industries
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haynes and Chart is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Haynes International and Chart Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chart Industries and Haynes International 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 Haynes International 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 Haynes International i.e., Haynes International and Chart Industries go up and down completely randomly.
Pair Corralation between Haynes International and Chart Industries
Given the investment horizon of 90 days Haynes International is expected to generate 0.44 times more return on investment than Chart Industries. However, Haynes International is 2.28 times less risky than Chart Industries. It trades about 0.2 of its potential returns per unit of risk. Chart Industries is currently generating about 0.02 per unit of risk. If you would invest 4,094 in Haynes International on January 19, 2024 and sell it today you would earn a total of 1,941 from holding Haynes International or generate 47.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haynes International vs. Chart Industries
Performance |
| Timeline |
| Haynes International |
| Chart Industries |
Haynes International and Chart Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haynes International and Chart Industries
The main advantage of trading using opposite Haynes International and Chart Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haynes International 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.| Haynes International vs. Ampco Pittsburgh | Haynes International vs. ESAB Corp | Haynes International vs. Mayville Engineering Co | Haynes International vs. Mueller Industries |
| Chart Industries vs. Crane NXT Co | Chart Industries vs. Donaldson | Chart Industries vs. ITT Inc | Chart Industries vs. Franklin Electric Co |
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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