Essential Utilities Correlations

WTRG Stock

USD 40.11 0.58 1.47%

The current 90-days correlation between Essential Utilities and American Water Works is 0.52 (i.e., Very weak diversification). The correlation of Essential Utilities 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.

Essential Utilities Correlation With Market

Modest diversification

The correlation between Essential Utilities and DJI is 0.25 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Essential Utilities and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Essential Utilities. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.

For more detail on how to invest in Essential Stock please use our How to Invest in Essential Utilities guide.

Moving against Essential Stock

0.4	AES	AES	Pair Corr
0.32	AQN	Algonquin Power Utilities	Pair Corr

Related Correlations Analysis

	AWR	CWT	CWCO	SJW	MSEX	YORW	ARTNA	AWK	GWRS
AWR		-0.24	0.08	-0.16	0.82	-0.16	-0.05	-0.23	0.57	AWR
CWT	-0.24		0.51	0.8	-0.19	0.9	0.77	0.83	0.03	CWT
CWCO	0.08	0.51		0.28	0.17	0.52	0.25	0.21	0.32	CWCO
SJW	-0.16	0.8	0.28		-0.16	0.77	0.66	0.73	0.05	SJW
MSEX	0.82	-0.19	0.17	-0.16		0.04	0.07	-0.19	0.75	MSEX
YORW	-0.16	0.9	0.52	0.77	0.04		0.82	0.72	0.28	YORW
ARTNA	-0.05	0.77	0.25	0.66	0.07	0.82		0.79	0.22	ARTNA
AWK	-0.23	0.83	0.21	0.73	-0.19	0.72	0.79		0.01	AWK
GWRS	0.57	0.03	0.32	0.05	0.75	0.28	0.22	0.01		GWRS
	AWR	CWT	CWCO	SJW	MSEX	YORW	ARTNA	AWK	GWRS

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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

YORW	+ 0.9	CWT
AWK	+ 0.83	CWT
MSEX	+ 0.82	AWR
ARTNA	+ 0.82	YORW
SJW	+ 0.8	CWT
AWK	+ 0.79	ARTNA

High negative correlations

CWT	- 0.24	AWR
AWK	- 0.23	AWR
AWK	- 0.19	MSEX
MSEX	- 0.19	CWT
MSEX	- 0.16	SJW
YORW	- 0.16	AWR

Risk-Adjusted Indicators

There is a big difference between Essential Stock performing well and Essential Utilities 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 Essential Utilities' 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
AWR	0.91	0.04	(0.03)	0.22	0.95	(1.01)	2.25	(1.57)	6.07
CWT	0.96	(0.11)	0.00	(0.07)	0.00	0.00	1.88	(1.73)	6.56
CWCO	1.49	(0.15)	(0.06)	0.01	1.79	(1.61)	3.68	(2.51)	9.18
SJW	1.07	(0.07)	0.00	(0.06)	0.00	0.00	1.94	(2.65)	6.24
MSEX	1.39	0.04	0.03	0.16	1.54	(1.45)	3.16	(2.35)	10.55
YORW	0.98	(0.19)	0.00	(0.08)	0.00	0.00	2.07	(2.23)	6.17
ARTNA	1.16	(0.08)	(0.09)	0.01	1.27	(1.38)	2.37	(1.87)	12.09
AWK	0.92	(0.03)	0.00	1.18	0.00	0.00	1.78	(1.70)	5.42
GWRS	1.49	(0.01)	0.01	0.11	1.60	(1.85)	4.16	(2.65)	9.59

Essential Utilities Corporate Management

Elizabeth Amato	Independent Director	Profile
Christina Kelly	Senior Officer	Profile
Whitney Kellett	Senior Officer	Profile
Ellen Ruff	Independent Director	Profile
Matthew Rhodes	Executive Vice President - Strategy and Corporate Development	Profile

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