Correlation Between Chart Industries and Exponent

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

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

Diversification Opportunities for Chart Industries and Exponent

-0.51

Correlation Coefficient

Chart Industries  Exponent

Excellent diversification

The 3 months correlation between Chart and Exponent is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Chart Industries and Exponent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exponent 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 Exponent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exponent has no effect on the direction of Chart Industries i.e., Chart Industries and Exponent go up and down completely randomly.

Pair Corralation between Chart Industries and Exponent

Given the investment horizon of 90 days Chart Industries is expected to generate 11.85 times less return on investment than Exponent. But when comparing it to its historical volatility, Chart Industries is 8.84 times less risky than Exponent. It trades about 0.04 of its potential returns per unit of risk. Exponent is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  7,036  in Exponent on August 8, 2025 and sell it today you would earn a total of  330.00  from holding Exponent or generate 4.69% return on investment over 90 days.

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

Chart Industries  vs.  Exponent

Chart Industries

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Chart Industries are ranked lower than 3 (%) 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.

Exponent

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Exponent are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Exponent is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Chart Industries and Exponent

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

The idea behind Chart Industries and Exponent 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.