Correlation Between Powercell Sweden and FM Mattsson

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

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

Diversification Opportunities for Powercell Sweden and FM Mattsson

-0.38

Correlation Coefficient

Powercell Sweden  FM Mattsson

Very good diversification

The 3 months correlation between Powercell and FMM-B is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Powercell Sweden and FM Mattsson Mora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FM Mattsson Mora and Powercell Sweden 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 Powercell Sweden are associated (or correlated) with FM Mattsson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FM Mattsson Mora has no effect on the direction of Powercell Sweden i.e., Powercell Sweden and FM Mattsson go up and down completely randomly.

Pair Corralation between Powercell Sweden and FM Mattsson

Assuming the 90 days trading horizon Powercell Sweden is expected to generate 2.35 times less return on investment than FM Mattsson. In addition to that, Powercell Sweden is 1.61 times more volatile than FM Mattsson Mora. It trades about 0.01 of its total potential returns per unit of risk. FM Mattsson Mora is currently generating about 0.03 per unit of volatility. If you would invest  5,406  in FM Mattsson Mora on October 7, 2025 and sell it today you would earn a total of  1,594  from holding FM Mattsson Mora or generate 29.49% return on investment over 90 days.

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

Powercell Sweden  vs.  FM Mattsson Mora

Powercell Sweden

Risk-Adjusted Performance

Weakest

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

FM Mattsson Mora

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FM Mattsson Mora are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, FM Mattsson unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Powercell Sweden and FM Mattsson

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

The idea behind Powercell Sweden and FM Mattsson Mora 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.