American Water Correlations

AWK Stock

USD 125.66 1.21 0.95%

The current 90-days correlation between American Water Works and Essential Utilities is 0.8 (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

Average diversification

The correlation between American Water Works and DJI is 0.15 (i.e., Average 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.

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

0.92	WTRG	Essential Utilities Earnings Call This Week	Pair Corr
0.9	AWR	American States Water Earnings Call This Week	Pair Corr
0.96	CWT	California Water Service	Pair Corr
0.87	SJW	SJW Group Common Earnings Call This Week	Pair Corr
0.9	GWRS	Global Water Resources	Pair Corr
0.9	YORW	York Water	Pair Corr
0.92	ARTNA	Artesian Resources	Pair Corr
0.93	MSEX	Middlesex Water	Pair Corr
0.73	PCYO	Pure Cycle	Pair Corr
0.83	D	Dominion Energy Earnings Call This Week	Pair Corr
0.79	ED	Consolidated Edison	Pair Corr
0.84	ES	Eversource Energy	Pair Corr
0.93	FE	FirstEnergy	Pair Corr
0.78	HE	Hawaiian Electric	Pair Corr
0.86	SO	Southern	Pair Corr
0.72	CMS-PB	Consumers Energy	Pair Corr
0.8	CMS-PC	CMS Energy	Pair Corr
0.78	VSTE	Vast Renewables	Pair Corr
0.63	FLNC	Fluence Energy	Pair Corr

Moving against American Stock

0.77	CDZI	Cadiz Inc	Pair Corr
0.73	CDZIP	Cadiz Depositary Shares	Pair Corr
0.59	ENIC	Enel Chile SA	Pair Corr
0.54	ALE	Allete Inc Earnings Call This Week	Pair Corr
0.48	ELLO	Ellomay Capital	Pair Corr
0.41	ENLT	Enlight Renewable Energy	Pair Corr

Related Correlations Analysis

	CWT	MSEX	AWR	YORW	SJW	WTRG	ARTNA	GWRS
CWT		0.98	0.96	0.97	0.91	0.96	0.97	0.89	CWT
MSEX	0.98		0.96	0.96	0.84	0.94	0.97	0.91	MSEX
AWR	0.96	0.96		0.98	0.84	0.96	0.95	0.87	AWR
YORW	0.97	0.96	0.98		0.89	0.96	0.97	0.83	YORW
SJW	0.91	0.84	0.84	0.89		0.89	0.91	0.74	SJW
WTRG	0.96	0.94	0.96	0.96	0.89		0.96	0.85	WTRG
ARTNA	0.97	0.97	0.95	0.97	0.91	0.96		0.88	ARTNA
GWRS	0.89	0.91	0.87	0.83	0.74	0.85	0.88		GWRS
	CWT	MSEX	AWR	YORW	SJW	WTRG	ARTNA	GWRS

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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	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
CWT	1.08	(0.21)	(0.33)	1.93	(2.47)	6.79
MSEX	1.25	(0.47)	(0.88)	2.08	(2.92)	7.83
AWR	1.01	(0.23)	(0.35)	2.25	(2.34)	6.73
YORW	0.89	(0.19)	(0.77)	2.11	(2.34)	6.65
SJW	1.21	(0.08)	(0.16)	3.05	(2.32)	8.45
WTRG	0.94	(0.16)	(0.30)	1.48	(1.98)	7.44
ARTNA	1.20	(0.18)	(0.72)	2.02	(3.16)	6.25
GWRS	1.30	(0.26)	(0.48)	2.46	(3.04)	6.86

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