Southwest Gas Correlations

SWX Stock

USD 72.27 0.78 1.09%

The current 90-days correlation between Southwest Gas Holdings and NewJersey Resources is 0.7 (i.e., Poor diversification). The correlation of Southwest Gas 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.

Southwest Gas Correlation With Market

Weak diversification

The correlation between Southwest Gas Holdings and DJI is 0.33 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Southwest Gas Holdings and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Southwest Gas Holdings. 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 Southwest Stock

0.83	ATO	Atmos Energy	Pair Corr
0.93	BKH	Black Hills	Pair Corr
0.84	CPK	Chesapeake Utilities	Pair Corr
0.76	NJR	NewJersey Resources	Pair Corr
0.86	NWN	Northwest Natural Gas	Pair Corr
0.92	OGS	One Gas	Pair Corr
0.68	OPAL	OPAL Fuels	Pair Corr
0.88	BIPC	Brookfield Infrastructure	Pair Corr
0.61	D	Dominion Energy	Pair Corr
0.63	FE	FirstEnergy	Pair Corr
0.65	HE	Hawaiian Electric	Pair Corr
0.67	EVRG	Evergy,	Pair Corr
0.78	WTRG	Essential Utilities	Pair Corr

Moving against Southwest Stock

0.64	AY	Atlantica Sustainable	Pair Corr
0.55	NFE	New Fortress Energy	Pair Corr
0.72	ENIC	Enel Chile SA	Pair Corr
0.58	AGR	Avangrid	Pair Corr
0.39	CDZIP	Cadiz Depositary Shares	Pair Corr
0.35	ENLT	Enlight Renewable Energy	Pair Corr

Related Correlations Analysis

	NJR	NWN	NWE	CPK	SR
NJR		0.95	0.35	0.94	0.88	NJR
NWN	0.95		0.38	0.97	0.74	NWN
NWE	0.35	0.38		0.33	0.12	NWE
CPK	0.94	0.97	0.33		0.75	CPK
SR	0.88	0.74	0.12	0.75		SR
	NJR	NWN	NWE	CPK	SR

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Risk-Adjusted Indicators

There is a big difference between Southwest Stock performing well and Southwest Gas 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 Southwest Gas' 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
NJR	0.96	0.04	0.03	0.12	1.20	(1.05)	2.17	(1.62)	7.20
NWN	0.97	0.01	0.00	0.05	1.25	(1.04)	1.86	(1.65)	9.06
NWE	1.09	(0.02)	0.00	(0.04)	0.00	0.00	2.47	(2.75)	7.10
CPK	0.99	0.05	0.03	0.14	1.37	(1.03)	2.32	(1.99)	8.69
SR	1.17	0.11	0.05	0.37	1.74	(1.11)	2.57	(2.63)	9.26

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