Correlation Between WD 40 and Perimeter Solutions

Can any of the company-specific risk be diversified away by investing in both WD 40 and Perimeter Solutions 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 WD 40 and Perimeter Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WD 40 Company and Perimeter Solutions SA, you can compare the effects of market volatilities on WD 40 and Perimeter Solutions 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 WD 40 with a short position of Perimeter Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of WD 40 and Perimeter Solutions.

Diversification Opportunities for WD 40 and Perimeter Solutions

-0.25

Correlation Coefficient

WD 40  Perimeter Solutions

Very good diversification

The 3 months correlation between WDFC and Perimeter is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding WD 40 Company and Perimeter Solutions SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perimeter Solutions and WD 40 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 WD 40 Company are associated (or correlated) with Perimeter Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perimeter Solutions has no effect on the direction of WD 40 i.e., WD 40 and Perimeter Solutions go up and down completely randomly.

Pair Corralation between WD 40 and Perimeter Solutions

Given the investment horizon of 90 days WD 40 Company is expected to under-perform the Perimeter Solutions. But the stock apears to be less risky and, when comparing its historical volatility, WD 40 Company is 2.3 times less risky than Perimeter Solutions. The stock trades about -0.1 of its potential returns per unit of risk. The Perimeter Solutions SA is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2,153  in Perimeter Solutions SA on August 26, 2025 and sell it today you would earn a total of  522.00  from holding Perimeter Solutions SA or generate 24.25% return on investment over 90 days.

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

WD 40 Company  vs.  Perimeter Solutions SA

WD 40 Company

Risk-Adjusted Performance

Weakest

Over the last 90 days WD 40 Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Perimeter Solutions

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Perimeter Solutions SA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Perimeter Solutions displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WD 40 and Perimeter Solutions

The main advantage of trading using opposite WD 40 and Perimeter Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WD 40 position performs unexpectedly, Perimeter Solutions 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 Perimeter Solutions will offset losses from the drop in Perimeter Solutions' long position.

The idea behind WD 40 Company and Perimeter Solutions SA 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..