National Grid Correlations

NGG Stock

USD 61.74 0.97 1.60%

The current 90-days correlation between National Grid PLC and Southern Company is 0.53 (i.e., Very weak diversification). The correlation of National Grid 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.

National Grid Correlation With Market

Weak diversification

The correlation between National Grid PLC and DJI is 0.32 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding National Grid PLC 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 National Grid PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.

Moving together with National Stock

0.88	D	Dominion Energy	Pair Corr
0.91	ED	Consolidated Edison	Pair Corr
0.86	ES	Eversource Energy	Pair Corr
0.86	FE	FirstEnergy Earnings Call This Week	Pair Corr
0.7	HE	Hawaiian Electric	Pair Corr
0.88	SO	Southern	Pair Corr
0.67	CMS-PB	Consumers Energy	Pair Corr
0.82	CMS-PC	CMS Energy	Pair Corr
0.66	AEP	American Electric Power Sell-off Trend	Pair Corr
0.7	CMS	CMS Energy	Pair Corr
0.88	DUK	Duke Energy Earnings Call This Week	Pair Corr
0.68	EBR	Centrais Electricas	Pair Corr
0.85	FTS	Fortis Inc Earnings Call Next Week	Pair Corr
0.83	KEP	Korea Electric Power	Pair Corr
0.85	NEE	Nextera Energy Aggressive Push	Pair Corr
0.79	PNW	Pinnacle West Capital	Pair Corr
0.76	POR	Portland General Electric	Pair Corr
0.62	PPL	PPL Corporation	Pair Corr
0.63	WEC	WEC Energy Group Earnings Call This Week	Pair Corr
0.63	XEL	Xcel Energy	Pair Corr
0.72	DUK-PA	Duke Energy Earnings Call This Week	Pair Corr

Moving against National Stock

0.57	ENIC	Enel Chile SA	Pair Corr
0.36	EDN	Empresa Distribuidora	Pair Corr
0.33	VSTEW	Vast Renewables	Pair Corr

Related Correlations Analysis

	SO	EIX	AEP	DUK	D	CNP	FE	PNW	PEG	ETR
SO		0.51	0.65	0.91	0.95	-0.28	0.96	0.84	0.55	-0.23	SO
EIX	0.51		-0.18	0.43	0.47	-0.34	0.65	0.57	0.42	-0.68	EIX
AEP	0.65	-0.18		0.76	0.66	0.18	0.55	0.53	0.39	0.37	AEP
DUK	0.91	0.43	0.76		0.91	0.02	0.9	0.88	0.66	-0.01	DUK
D	0.95	0.47	0.66	0.91		-0.27	0.94	0.8	0.54	-0.19	D
CNP	-0.28	-0.34	0.18	0.02	-0.27		-0.25	-0.03	0.33	0.77	CNP
FE	0.96	0.65	0.55	0.9	0.94	-0.25		0.9	0.6	-0.31	FE
PNW	0.84	0.57	0.53	0.88	0.8	-0.03	0.9		0.69	-0.12	PNW
PEG	0.55	0.42	0.39	0.66	0.54	0.33	0.6	0.69		0.29	PEG
ETR	-0.23	-0.68	0.37	-0.01	-0.19	0.77	-0.31	-0.12	0.29		ETR
	SO	EIX	AEP	DUK	D	CNP	FE	PNW	PEG	ETR

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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

FE	+ 0.96	SO
D	+ 0.95	SO
FE	+ 0.94	D
DUK	+ 0.91	SO
D	+ 0.91	DUK
FE	+ 0.9	DUK

High negative correlations

ETR	- 0.68	EIX
CNP	- 0.34	EIX
ETR	- 0.31	FE
CNP	- 0.28	SO
CNP	- 0.27	D
FE	- 0.25	CNP

Risk-Adjusted Indicators

There is a big difference between National Stock performing well and National Grid 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 National Grid'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
SO	0.95	(0.07)	0.00	(0.34)	0.00	0.00	1.96	(2.05)	7.04
EIX	1.61	(0.67)	0.00	(1.55)	0.00	0.00	2.04	(6.33)	13.93
AEP	0.95	(0.01)	(0.04)	0.08	1.37	(0.93)	1.98	(1.95)	7.10
DUK	0.86	(0.02)	(0.08)	0.02	1.08	(0.87)	1.94	(1.76)	4.49
D	1.05	(0.10)	0.00	(0.23)	0.00	0.00	2.04	(2.31)	7.96
CNP	1.01	0.20	0.13	0.48	0.84	(1.11)	2.46	(1.77)	5.43
FE	0.78	(0.10)	0.00	(0.22)	0.00	0.00	1.61	(1.76)	5.95
PNW	0.94	0.00	(0.04)	0.09	1.08	(1.02)	2.03	(1.75)	6.31
PEG	1.17	(0.07)	0.00	(0.22)	0.00	0.00	2.48	(2.41)	9.33
ETR	1.01	0.19	0.09	0.80	1.18	(1.05)	2.26	(1.85)	7.46

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