Correlation Between Terna Energy and Powercell Sweden

Can any of the company-specific risk be diversified away by investing in both Terna Energy and Powercell Sweden 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 Terna Energy and Powercell Sweden into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Terna Energy Societe and Powercell Sweden, you can compare the effects of market volatilities on Terna Energy and Powercell Sweden 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 Terna Energy with a short position of Powercell Sweden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terna Energy and Powercell Sweden.

Diversification Opportunities for Terna Energy and Powercell Sweden

0.0

Correlation Coefficient

Terna Energy  Powercell Sweden

Pay attention - limited upside

The 3 months correlation between Terna and Powercell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Terna Energy Societe and Powercell Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powercell Sweden and Terna Energy 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 Terna Energy Societe are associated (or correlated) with Powercell Sweden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powercell Sweden has no effect on the direction of Terna Energy i.e., Terna Energy and Powercell Sweden go up and down completely randomly.

Pair Corralation between Terna Energy and Powercell Sweden

If you would invest  2,628  in Powercell Sweden on April 24, 2025 and sell it today you would earn a total of  900.00  from holding Powercell Sweden or generate 34.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

Terna Energy Societe  vs.  Powercell Sweden

Terna Energy Societe

Risk-Adjusted Performance

Very Weak

Over the last 90 days Terna Energy Societe has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Terna Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Powercell Sweden

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Powercell Sweden are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Powercell Sweden unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Terna Energy and Powercell Sweden

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

The idea behind Terna Energy Societe and Powercell Sweden 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.