Correlation Between Perimeter Solutions and Nofire Technologies

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

Diversification Opportunities for Perimeter Solutions and Nofire Technologies

0.66

Correlation Coefficient

Perimeter Solutions  Nofire Technologies

Poor diversification

The 3 months correlation between Perimeter and Nofire is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Perimeter Solutions SA and Nofire Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nofire 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 Nofire Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nofire Technologies has no effect on the direction of Perimeter Solutions i.e., Perimeter Solutions and Nofire Technologies go up and down completely randomly.

Pair Corralation between Perimeter Solutions and Nofire Technologies

Considering the 90-day investment horizon Perimeter Solutions is expected to generate 53.1 times less return on investment than Nofire Technologies. But when comparing it to its historical volatility, Perimeter Solutions SA is 54.49 times less risky than Nofire Technologies. It trades about 0.24 of its potential returns per unit of risk. Nofire Technologies is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  0.06  in Nofire Technologies on May 4, 2025 and sell it today you would earn a total of  2.34  from holding Nofire Technologies or generate 3900.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.92%
Values	Daily Returns

Perimeter Solutions SA  vs.  Nofire Technologies

Perimeter Solutions

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Perimeter Solutions SA are ranked lower than 18 (%) 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.

Nofire Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nofire Technologies are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Nofire Technologies demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Perimeter Solutions and Nofire Technologies

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

The idea behind Perimeter Solutions SA and Nofire Technologies 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.