Correlation Between Acconeer and Powercell Sweden

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

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

Diversification Opportunities for Acconeer and Powercell Sweden

-0.33

Correlation Coefficient

Acconeer  Powercell Sweden

Very good diversification

The 3 months correlation between Acconeer and Powercell is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Acconeer AB and Powercell Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powercell Sweden and Acconeer 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 Acconeer AB 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 Acconeer i.e., Acconeer and Powercell Sweden go up and down completely randomly.

Pair Corralation between Acconeer and Powercell Sweden

Assuming the 90 days trading horizon Acconeer is expected to generate 191.84 times less return on investment than Powercell Sweden. But when comparing it to its historical volatility, Acconeer AB is 1.3 times less risky than Powercell Sweden. It trades about 0.0 of its potential returns per unit of risk. Powercell Sweden is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2,714  in Powercell Sweden on April 22, 2025 and sell it today you would earn a total of  516.00  from holding Powercell Sweden or generate 19.01% return on investment over 90 days.

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

Acconeer AB  vs.  Powercell Sweden

Acconeer AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acconeer AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Acconeer is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Powercell Sweden

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Powercell Sweden are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Powercell Sweden unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Acconeer and Powercell Sweden

The main advantage of trading using opposite Acconeer and Powercell Sweden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acconeer 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 Acconeer AB 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.