Nextera Energy Correlations

NEP Stock

USD 10.44 1.39 11.75%

The current 90-days correlation between Nextera Energy Partners and Clearway Energy Class is 0.24 (i.e., Modest diversification). The correlation of Nextera Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Nextera Energy Correlation With Market

Average diversification

The correlation between Nextera Energy Partners and DJI is 0.18 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Nextera Energy Partners and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Nextera Energy Partners. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.

To learn how to invest in Nextera Stock, please use our How to Invest in Nextera Energy guide.

Moving against Nextera Stock

0.6	ADN	Advent Technologies	Pair Corr
0.45	GEV	GE Vernova LLC Buyout Trend	Pair Corr
0.43	ELLO	Ellomay Capital	Pair Corr
0.37	ADNWW	Advent Technologies	Pair Corr
0.57	AEE	Ameren Corp	Pair Corr
0.54	NI	NiSource	Pair Corr
0.52	EVRG	Evergy,	Pair Corr
0.49	CDZIP	Cadiz Depositary Shares	Pair Corr
0.42	SR	Spire Inc	Pair Corr

Related Correlations Analysis

	BEPC	AQN	CWEN	AY	CWEN-A	BEP	AQNU	DNNGY
BEPC		0.8	0.61	-0.87	0.53	0.97	-0.23	0.9	BEPC
AQN	0.8		0.51	-0.79	0.52	0.85	-0.57	0.85	AQN
CWEN	0.61	0.51		-0.54	0.87	0.54	-0.2	0.49	CWEN
AY	-0.87	-0.79	-0.54		-0.52	-0.88	0.34	-0.92	AY
CWEN-A	0.53	0.52	0.87	-0.52		0.47	-0.28	0.5	CWEN-A
BEP	0.97	0.85	0.54	-0.88	0.47		-0.28	0.94	BEP
AQNU	-0.23	-0.57	-0.2	0.34	-0.28	-0.28		-0.33	AQNU
DNNGY	0.9	0.85	0.49	-0.92	0.5	0.94	-0.33		DNNGY
	BEPC	AQN	CWEN	AY	CWEN-A	BEP	AQNU	DNNGY

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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

BEP	+ 0.97	BEPC
DNNGY	+ 0.94	BEP
DNNGY	+ 0.9	BEPC
CWEN-A	+ 0.87	CWEN
BEP	+ 0.85	AQN
DNNGY	+ 0.85	AQN

High negative correlations

DNNGY	- 0.92	AY
BEP	- 0.88	AY
AY	- 0.87	BEPC
AY	- 0.79	AQN
AQNU	- 0.57	AQN
AY	- 0.54	CWEN

Risk-Adjusted Indicators

There is a big difference between Nextera Stock performing well and Nextera Energy 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 Nextera Energy'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	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
BEPC	1.73	(0.51)	0.00	(0.88)	0.00	2.60	(4.10)	11.22
AQN	1.33	(0.25)	0.00	(0.48)	0.00	2.54	(3.18)	6.59
CWEN	1.55	(0.08)	0.00	(0.06)	0.00	3.14	(3.15)	14.81
AY	0.08	0.01	(0.47)	0.41	(0.10)	0.23	(0.18)	0.60
CWEN-A	1.58	(0.06)	0.00	(0.07)	0.00	3.42	(3.05)	15.50
BEP	1.44	(0.47)	0.00	(1.02)	0.00	2.84	(3.70)	10.55
AQNU	1.36	(0.05)	0.00	0.57	0.00	2.49	(3.18)	8.45
DNNGY	2.14	(0.77)	0.00	(1.42)	0.00	3.49	(5.48)	17.95

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