Correlation Between Chart Industries and BASE

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

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

Diversification Opportunities for Chart Industries and BASE

-0.5

Correlation Coefficient

Chart Industries  BASE

Very good diversification

The 3 months correlation between Chart and BASE is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Chart Industries and BASE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASE Inc 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 BASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BASE Inc has no effect on the direction of Chart Industries i.e., Chart Industries and BASE go up and down completely randomly.

Pair Corralation between Chart Industries and BASE

Given the investment horizon of 90 days Chart Industries is expected to generate 0.08 times more return on investment than BASE. However, Chart Industries is 13.02 times less risky than BASE. It trades about 0.18 of its potential returns per unit of risk. BASE Inc is currently generating about -0.06 per unit of risk. If you would invest  19,840  in Chart Industries on August 26, 2025 and sell it today you would earn a total of  510.00  from holding Chart Industries or generate 2.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Chart Industries  vs.  BASE Inc

Chart Industries

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Chart Industries are ranked lower than 13 (%) 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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

BASE Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days BASE Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Chart Industries and BASE

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

The idea behind Chart Industries and BASE Inc 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.