Correlation Between Perimeter Solutions and Quaker Chemical
Can any of the company-specific risk be diversified away by investing in both Perimeter Solutions and Quaker Chemical 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 Perimeter Solutions and Quaker Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perimeter Solutions SA and Quaker Chemical, you can compare the effects of market volatilities on Perimeter Solutions and Quaker Chemical 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 Perimeter Solutions with a short position of Quaker Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perimeter Solutions and Quaker Chemical.
Diversification Opportunities for Perimeter Solutions and Quaker Chemical
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perimeter and Quaker is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Perimeter Solutions SA and Quaker Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaker Chemical and Perimeter Solutions 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 Perimeter Solutions SA are associated (or correlated) with Quaker Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaker Chemical has no effect on the direction of Perimeter Solutions i.e., Perimeter Solutions and Quaker Chemical go up and down completely randomly.
Pair Corralation between Perimeter Solutions and Quaker Chemical
Considering the 90-day investment horizon Perimeter Solutions SA is expected to generate 1.03 times more return on investment than Quaker Chemical. However, Perimeter Solutions is 1.03 times more volatile than Quaker Chemical. It trades about 0.17 of its potential returns per unit of risk. Quaker Chemical is currently generating about -0.08 per unit of risk. If you would invest 917.00 in Perimeter Solutions SA on March 11, 2025 and sell it today you would earn a total of 363.00 from holding Perimeter Solutions SA or generate 39.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perimeter Solutions SA vs. Quaker Chemical
Performance |
| Timeline |
| Perimeter Solutions |
| Quaker Chemical |
Perimeter Solutions and Quaker Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perimeter Solutions and Quaker Chemical
The main advantage of trading using opposite Perimeter Solutions and Quaker Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perimeter Solutions position performs unexpectedly, Quaker Chemical 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 Quaker Chemical will offset losses from the drop in Quaker Chemical's long position.| Perimeter Solutions vs. Kronos Worldwide | Perimeter Solutions vs. Sensient Technologies | Perimeter Solutions vs. Element Solutions | Perimeter Solutions vs. Trinseo SA |
| Quaker Chemical vs. Minerals Technologies | Quaker Chemical vs. Innospec | Quaker Chemical vs. H B Fuller | Quaker Chemical vs. Cabot |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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