Correlation Between Chart Industries and Clean Harbors

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

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

Diversification Opportunities for Chart Industries and Clean Harbors

0.74

Correlation Coefficient

Chart Industries  Clean Harbors

Poor diversification

The 3 months correlation between Chart and Clean is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Chart Industries and Clean Harbors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Harbors 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 Clean Harbors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Harbors has no effect on the direction of Chart Industries i.e., Chart Industries and Clean Harbors go up and down completely randomly.

Pair Corralation between Chart Industries and Clean Harbors

Given the investment horizon of 90 days Chart Industries is expected to generate 3.56 times more return on investment than Clean Harbors. However, Chart Industries is 3.56 times more volatile than Clean Harbors. It trades about 0.13 of its potential returns per unit of risk. Clean Harbors is currently generating about 0.07 per unit of risk. If you would invest  15,674  in Chart Industries on May 2, 2025 and sell it today you would earn a total of  4,243  from holding Chart Industries or generate 27.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Chart Industries  vs.  Clean Harbors

Chart Industries

Risk-Adjusted Performance

OK

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 inconsistent essential indicators, Chart Industries unveiled solid returns over the last few months and may actually be approaching a breakup point.

Clean Harbors

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Clean Harbors are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong essential indicators, Clean Harbors is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Chart Industries and Clean Harbors

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

The idea behind Chart Industries and Clean Harbors 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.