Correlation Between Telix Pharmaceuticals and PowerCell Sweden

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

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

Diversification Opportunities for Telix Pharmaceuticals and PowerCell Sweden

-0.48

Correlation Coefficient

Telix Pharmaceuticals  PowerCell Sweden

Very good diversification

The 3 months correlation between Telix and PowerCell is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Telix Pharmaceuticals Limited and PowerCell Sweden AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerCell Sweden and Telix Pharmaceuticals 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 Telix Pharmaceuticals Limited 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 Telix Pharmaceuticals i.e., Telix Pharmaceuticals and PowerCell Sweden go up and down completely randomly.

Pair Corralation between Telix Pharmaceuticals and PowerCell Sweden

Assuming the 90 days horizon Telix Pharmaceuticals Limited is expected to under-perform the PowerCell Sweden. But the pink sheet apears to be less risky and, when comparing its historical volatility, Telix Pharmaceuticals Limited is 3.43 times less risky than PowerCell Sweden. The pink sheet trades about -0.17 of its potential returns per unit of risk. The PowerCell Sweden AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  264.00  in PowerCell Sweden AB on May 13, 2025 and sell it today you would earn a total of  52.00  from holding PowerCell Sweden AB or generate 19.7% return on investment over 90 days.

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

Telix Pharmaceuticals Limited  vs.  PowerCell Sweden AB

Telix Pharmaceuticals

Risk-Adjusted Performance

Weakest

Over the last 90 days Telix Pharmaceuticals Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

PowerCell Sweden

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in PowerCell Sweden AB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, PowerCell Sweden reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Telix Pharmaceuticals and PowerCell Sweden

The main advantage of trading using opposite Telix Pharmaceuticals and PowerCell Sweden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telix Pharmaceuticals 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 Telix Pharmaceuticals Limited and PowerCell Sweden AB 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.