American Water Correlations

AWK Stock

USD 142.91 0.70 0.49%

The current 90-days correlation between American Water Works and Essential Utilities is 0.89 (i.e., Very poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Water moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Water Works moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

American Water Correlation With Market

Good diversification

The correlation between American Water Works and DJI is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Water Works and DJI in the same portfolio, assuming nothing else is changed.

Build AI portfolio with American Stock

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Water Works. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.

Moving together with American Stock

0.82	WTRG	Essential Utilities	Pair Corr
0.76	AWR	American States Water	Pair Corr
0.83	CWT	California Water Service	Pair Corr
0.71	HTO	H2O America Symbol Change	Pair Corr
0.77	YORW	York Water	Pair Corr
0.76	ARTNA	Artesian Resources	Pair Corr
0.76	MSEX	Middlesex Water	Pair Corr
0.82	ED	Consolidated Edison	Pair Corr
0.79	SR	Spire Inc	Pair Corr
0.79	AEE	Ameren Corp	Pair Corr
0.81	AEP	American Electric Power	Pair Corr

Moving against American Stock

0.58	CDZI	Cadiz Inc	Pair Corr
0.57	ES	Eversource Energy Earnings Call This Week	Pair Corr
0.54	SBS	Companhia de Saneamento	Pair Corr
0.53	CWCO	Consolidated Water	Pair Corr
0.35	HE	Hawaiian Electric	Pair Corr
0.34	D	Dominion Energy	Pair Corr
0.67	ELPC	Companhia Paranaense	Pair Corr
0.67	BIP	Brookfield Infrastructure	Pair Corr
0.58	BEP	Brookfield Renewable	Pair Corr
0.54	VG	Venture Global,	Pair Corr
0.54	ENIC	Enel Chile SA Earnings Call This Week	Pair Corr
0.51	ENLT	Enlight Renewable Energy	Pair Corr
0.49	AQN	Algonquin Power Utilities	Pair Corr
0.44	AES	AES Aggressive Push	Pair Corr
0.43	FLNC	Fluence Energy Buyout Trend	Pair Corr
0.31	RNWWW	ReNew Energy Global	Pair Corr

Related Correlations Analysis

	WTRG	AWR	CWT	CWCO	XYL	NEE	AEP
WTRG		0.83	0.92	-0.88	-0.76	-0.76	0.61	WTRG
AWR	0.83		0.83	-0.62	-0.62	-0.63	0.41	AWR
CWT	0.92	0.83		-0.78	-0.88	-0.76	0.64	CWT
CWCO	-0.88	-0.62	-0.78		0.78	0.79	-0.33	CWCO
XYL	-0.76	-0.62	-0.88	0.78		0.81	-0.4	XYL
NEE	-0.76	-0.63	-0.76	0.79	0.81		-0.34	NEE
AEP	0.61	0.41	0.64	-0.33	-0.4	-0.34		AEP
	WTRG	AWR	CWT	CWCO	XYL	NEE	AEP

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

CWT	+ 0.92	WTRG
AWR	+ 0.83	WTRG
CWT	+ 0.83	AWR
NEE	+ 0.81	XYL
NEE	+ 0.79	CWCO
XYL	+ 0.78	CWCO

High negative correlations

XYL	- 0.88	CWT
CWCO	- 0.88	WTRG
CWCO	- 0.78	CWT
NEE	- 0.76	CWT
NEE	- 0.76	WTRG
XYL	- 0.76	WTRG

Risk-Adjusted Indicators

There is a big difference between American Stock performing well and American Water Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze American Water's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
WTRG	0.96	(0.11)	0.00	(0.90)	0.00	0.00	1.79	(2.03)	6.54
AWR	1.00	(0.10)	0.00	(0.36)	0.00	0.00	2.11	(2.22)	6.03
CWT	1.07	(0.20)	0.00	(1.33)	0.00	0.00	2.22	(2.67)	6.10
CWCO	1.37	0.26	0.13	0.65	1.13	(1.56)	3.14	(1.99)	9.25
XYL	0.90	0.17	0.17	0.31	0.58	(1.02)	2.33	(1.53)	5.32
NEE	1.38	0.12	0.03	0.33	1.83	(1.39)	3.04	(2.99)	9.91
AEP	0.78	(0.01)	(0.10)	0.10	1.03	(0.81)	1.53	(1.81)	6.00

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