American Water Correlations

AWK Stock

USD 139.70 1.43 1.01%

The current 90-days correlation between American Water Works and Essential Utilities is 0.89 (i.e., Very poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Water moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Water Works moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

American Water Correlation With Market

Significant diversification

The correlation between American Water Works and DJI is 0.02 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Water Works and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Water Works. 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 American Stock

0.94	WTRG	Essential Utilities	Pair Corr
0.79	CWT	California Water Service	Pair Corr
0.77	SJW	SJW Group Common	Pair Corr
0.81	YORW	York Water	Pair Corr
0.7	ARTNA	Artesian Resources	Pair Corr
0.87	MSEX	Middlesex Water	Pair Corr
0.67	CWCO	Consolidated Water Earnings Call Today	Pair Corr
0.93	ED	Consolidated Edison	Pair Corr
0.75	ES	Eversource Energy Sell-off Trend	Pair Corr
0.84	HE	Hawaiian Electric	Pair Corr
0.66	NI	NiSource	Pair Corr
0.93	SO	Southern	Pair Corr
0.84	SR	Spire Inc	Pair Corr
0.73	CMS-PB	Consumers Energy	Pair Corr
0.65	ELPC	Companhia Paranaense	Pair Corr
0.73	ENIC	Enel Chile SA	Pair Corr
0.73	EVRG	Evergy,	Pair Corr
0.73	AEE	Ameren Corp Sell-off Trend	Pair Corr
0.78	AEP	American Electric Power	Pair Corr
0.64	ALE	Allete Inc	Pair Corr
0.82	AQN	Algonquin Power Utilities	Pair Corr

Moving against American Stock

0.83	CDZI	Cadiz Inc Earnings Call Tomorrow	Pair Corr
0.63	PCYO	Pure Cycle	Pair Corr
0.31	GWRS	Global Water Resources	Pair Corr
0.79	VSTE	Vast Renewables	Pair Corr
0.79	BIP	Brookfield Infrastructure	Pair Corr
0.73	RNWWW	ReNew Energy Global	Pair Corr
0.63	CEG	Constellation Energy Corp	Pair Corr
0.52	WAVE	Eco Wave Power	Pair Corr
0.5	CMS-PC	CMS Energy	Pair Corr
0.5	ADN	Advent Technologies	Pair Corr

Related Correlations Analysis

	CWT	MSEX	AWR	YORW	SJW	WTRG	ARTNA	GWRS
CWT		0.82	0.76	0.93	0.88	0.9	0.92	-0.05	CWT
MSEX	0.82		0.71	0.87	0.67	0.9	0.69	-0.12	MSEX
AWR	0.76	0.71		0.8	0.53	0.7	0.73	0.13	AWR
YORW	0.93	0.87	0.8		0.82	0.91	0.88	-0.2	YORW
SJW	0.88	0.67	0.53	0.82		0.83	0.87	-0.24	SJW
WTRG	0.9	0.9	0.7	0.91	0.83		0.81	-0.26	WTRG
ARTNA	0.92	0.69	0.73	0.88	0.87	0.81		0.0	ARTNA
GWRS	-0.05	-0.12	0.13	-0.2	-0.24	-0.26	0.0		GWRS
	CWT	MSEX	AWR	YORW	SJW	WTRG	ARTNA	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	+ 0.93	CWT
ARTNA	+ 0.92	CWT
WTRG	+ 0.91	YORW
WTRG	+ 0.9	CWT
WTRG	+ 0.9	MSEX
SJW	+ 0.88	CWT

High negative correlations

GWRS	- 0.26	WTRG
GWRS	- 0.24	SJW
GWRS	- 0.2	YORW
GWRS	- 0.12	MSEX
GWRS	- 0.05	CWT
GWRS	- 0.0	ARTNA

Risk-Adjusted Indicators

There is a big difference between American Stock performing well and American Water 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 American Water'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
CWT	1.19	(0.06)	0.00	(0.21)	0.00	0.00	2.37	(2.47)	7.58
MSEX	1.71	0.06	0.05	(0.23)	1.90	(1.96)	3.60	(3.06)	19.17
AWR	1.16	(0.15)	0.00	0.35	0.00	0.00	2.28	(2.90)	7.60
YORW	1.12	(0.04)	0.00	1.46	0.00	0.00	2.68	(2.90)	6.67
SJW	1.40	(0.04)	0.00	(0.24)	0.00	0.00	3.31	(2.32)	10.19
WTRG	1.17	0.01	0.03	0.07	1.52	(1.26)	2.65	(2.65)	8.56
ARTNA	1.28	(0.10)	0.00	(4.15)	0.00	0.00	2.46	(3.00)	6.58
GWRS	1.15	(0.22)	0.00	(1.28)	0.00	0.00	2.31	(3.05)	5.86

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