Correlation Between Perimeter Solutions and ProShares Ultra

Can any of the company-specific risk be diversified away by investing in both Perimeter Solutions and ProShares Ultra 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 ProShares Ultra 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 ProShares Ultra Oil, you can compare the effects of market volatilities on Perimeter Solutions and ProShares Ultra 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 ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perimeter Solutions and ProShares Ultra.

Diversification Opportunities for Perimeter Solutions and ProShares Ultra

0.57

Correlation Coefficient

Perimeter Solutions  ProShares Ultra

Very weak diversification

The 3 months correlation between Perimeter and ProShares is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Perimeter Solutions SA and ProShares Ultra Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Oil 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 ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra Oil has no effect on the direction of Perimeter Solutions i.e., Perimeter Solutions and ProShares Ultra go up and down completely randomly.

Pair Corralation between Perimeter Solutions and ProShares Ultra

Considering the 90-day investment horizon Perimeter Solutions SA is expected to generate 1.21 times more return on investment than ProShares Ultra. However, Perimeter Solutions is 1.21 times more volatile than ProShares Ultra Oil. It trades about 0.19 of its potential returns per unit of risk. ProShares Ultra Oil is currently generating about 0.02 per unit of risk. If you would invest  1,722  in Perimeter Solutions SA on July 20, 2025 and sell it today you would earn a total of  570.00  from holding Perimeter Solutions SA or generate 33.1% return on investment over 90 days.

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

Perimeter Solutions SA  vs.  ProShares Ultra Oil

Perimeter Solutions

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Perimeter Solutions SA are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Perimeter Solutions displayed solid returns over the last few months and may actually be approaching a breakup point.

ProShares Ultra Oil

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Oil are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward indicators, ProShares Ultra is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Perimeter Solutions and ProShares Ultra

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

The idea behind Perimeter Solutions SA and ProShares Ultra Oil 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.