Correlation Between Asker Healthcare and Powercell Sweden

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

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

Diversification Opportunities for Asker Healthcare and Powercell Sweden

-0.52

Correlation Coefficient

Asker Healthcare  Powercell Sweden

Excellent diversification

The 3 months correlation between Asker and Powercell is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Asker Healthcare and Powercell Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powercell Sweden and Asker Healthcare 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 Asker Healthcare 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 Asker Healthcare i.e., Asker Healthcare and Powercell Sweden go up and down completely randomly.

Pair Corralation between Asker Healthcare and Powercell Sweden

Assuming the 90 days trading horizon Asker Healthcare is expected to under-perform the Powercell Sweden. In addition to that, Asker Healthcare is 1.1 times more volatile than Powercell Sweden. It trades about -0.15 of its total potential returns per unit of risk. Powercell Sweden is currently generating about 0.29 per unit of volatility. If you would invest  2,422  in Powercell Sweden on April 21, 2025 and sell it today you would earn a total of  808.00  from holding Powercell Sweden or generate 33.36% return on investment over 90 days.

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

Asker Healthcare  vs.  Powercell Sweden

Asker Healthcare

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Asker Healthcare are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Asker Healthcare may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 Asker Healthcare and Powercell Sweden

The main advantage of trading using opposite Asker Healthcare and Powercell Sweden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asker Healthcare 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 Asker Healthcare 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.