POTOMAC Correlations

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87.64 2.99 3.53%

The current 90-days correlation between POTOMAC ELEC PWR and CVR Partners LP is 0.02 (i.e., Significant diversification). The correlation of POTOMAC 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.

POTOMAC Correlation With Market

Significant diversification

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

The ability to find closely correlated positions to POTOMAC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace POTOMAC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back POTOMAC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling POTOMAC ELEC PWR to buy it.

Moving together with POTOMAC Bond

0.71	00108WAF7	AEP TEX INC	Pair Corr
0.61	AA	Alcoa Corp	Pair Corr

Moving against POTOMAC Bond

0.87	MMM	3M Company	Pair Corr
0.81	JPM	JPMorgan Chase	Pair Corr
0.74	GE	GE Aerospace	Pair Corr
0.63	CSCO	Cisco Systems	Pair Corr
0.58	BA	Boeing	Pair Corr
0.57	WMT	Walmart	Pair Corr
0.5	PFE	Pfizer Inc Aggressive Push	Pair Corr
0.48	RXI	iShares Global Consumer	Pair Corr
0.36	BAC	Bank of America	Pair Corr

Related Correlations Analysis

	UAN	GPC	AVD	MYTE	CDW	BCPC	ALTO
UAN		-0.13	0.15	0.54	0.75	-0.45	0.53	UAN
GPC	-0.13		0.56	-0.01	-0.11	0.72	-0.42	GPC
AVD	0.15	0.56		0.09	0.37	0.48	-0.47	AVD
MYTE	0.54	-0.01	0.09		0.72	-0.49	0.39	MYTE
CDW	0.75	-0.11	0.37	0.72		-0.46	0.36	CDW
BCPC	-0.45	0.72	0.48	-0.49	-0.46		-0.69	BCPC
ALTO	0.53	-0.42	-0.47	0.39	0.36	-0.69		ALTO
	UAN	GPC	AVD	MYTE	CDW	BCPC	ALTO

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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

CDW	+ 0.75	UAN
BCPC	+ 0.72	GPC
CDW	+ 0.72	MYTE
AVD	+ 0.56	GPC
MYTE	+ 0.54	UAN
ALTO	+ 0.53	UAN

High negative correlations

ALTO	- 0.69	BCPC
BCPC	- 0.49	MYTE
ALTO	- 0.47	AVD
BCPC	- 0.46	CDW
BCPC	- 0.45	UAN
ALTO	- 0.42	GPC

Risk-Adjusted Indicators

There is a big difference between POTOMAC Bond performing well and POTOMAC Corporate Bond 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 POTOMAC'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
UAN	1.20	0.16	0.11	(6.05)	1.14	(1.35)	3.38	(1.70)	12.05
GPC	1.02	0.00	(0.01)	0.00	1.24	(1.09)	2.03	(2.35)	6.34
AVD	2.44	(0.25)	0.00	(0.20)	0.00	0.00	4.83	(5.36)	15.45
MYTE	3.31	0.93	0.32	1.08	2.33	(4.47)	11.52	(4.53)	30.36
CDW	1.17	0.05	0.03	0.07	1.65	(1.07)	2.67	(2.92)	7.33
BCPC	1.01	(0.03)	0.00	(0.03)	0.00	0.00	1.60	(2.23)	4.98
ALTO	2.77	0.41	0.12	0.90	2.87	(3.68)	8.33	(4.92)	19.74

Be your own money manager

Our tools can tell you how much better you can do entering a position in POTOMAC without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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