Correlation Between Applied Industrial and Chart Industries

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

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

Diversification Opportunities for Applied Industrial and Chart Industries

-0.51

Correlation Coefficient

Applied Industrial  Chart Industries

Excellent diversification

The 3 months correlation between Applied and Chart is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Applied Industrial Technologie and Chart Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chart Industries and Applied Industrial 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 Applied Industrial Technologies 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 Applied Industrial i.e., Applied Industrial and Chart Industries go up and down completely randomly.

Pair Corralation between Applied Industrial and Chart Industries

Considering the 90-day investment horizon Applied Industrial Technologies is expected to under-perform the Chart Industries. In addition to that, Applied Industrial is 6.77 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  19,936  in Chart Industries on August 29, 2025 and sell it today you would earn a total of  449.00  from holding Chart Industries or generate 2.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Applied Industrial Technologie  vs.  Chart Industries

Applied Industrial

Risk-Adjusted Performance

Weakest

Over the last 90 days Applied Industrial Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, Applied Industrial is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private 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 recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Applied Industrial and Chart Industries

The main advantage of trading using opposite Applied Industrial and Chart Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Industrial 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 Applied Industrial Technologies 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.