Correlation Between Perimeter Solutions and Core Molding
Can any of the company-specific risk be diversified away by investing in both Perimeter Solutions and Core Molding 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 Core Molding 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 Core Molding Technologies, you can compare the effects of market volatilities on Perimeter Solutions and Core Molding 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 Core Molding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perimeter Solutions and Core Molding.
Diversification Opportunities for Perimeter Solutions and Core Molding
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Perimeter and Core is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Perimeter Solutions SA and Core Molding Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Molding Technologies 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 Core Molding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Molding Technologies has no effect on the direction of Perimeter Solutions i.e., Perimeter Solutions and Core Molding go up and down completely randomly.
Pair Corralation between Perimeter Solutions and Core Molding
Considering the 90-day investment horizon Perimeter Solutions SA is expected to generate 1.08 times more return on investment than Core Molding. However, Perimeter Solutions is 1.08 times more volatile than Core Molding Technologies. It trades about 0.16 of its potential returns per unit of risk. Core Molding Technologies is currently generating about 0.01 per unit of risk. If you would invest 441.00 in Perimeter Solutions SA on August 27, 2024 and sell it today you would earn a total of 872.00 from holding Perimeter Solutions SA or generate 197.73% 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. Core Molding Technologies
Performance |
| Timeline |
| Perimeter Solutions |
| Core Molding Technologies |
Perimeter Solutions and Core Molding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perimeter Solutions and Core Molding
The main advantage of trading using opposite Perimeter Solutions and Core Molding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perimeter Solutions position performs unexpectedly, Core Molding 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 Core Molding will offset losses from the drop in Core Molding's long position.| Perimeter Solutions vs. Orion Engineered Carbons | Perimeter Solutions vs. Cabot | Perimeter Solutions vs. Minerals Technologies | Perimeter Solutions vs. Quaker Chemical |
| Core Molding vs. Quaker Chemical | Core Molding vs. Minerals Technologies | Core Molding vs. Innospec | Core Molding vs. H B Fuller |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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