American States Correlations

AWR Stock  USD 85.37  0.02  0.02%   
The current 90-days correlation between American States Water and SJW Group Common is 0.76 (i.e., Poor diversification). The correlation of American States 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.

American States Correlation With Market

Average diversification

The correlation between American States Water and DJI is 0.17 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American States Water 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 States Water. 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

  0.67MSEX Middlesex WaterPairCorr
  0.66AY Atlantica SustainablePairCorr
  0.7NI NiSourcePairCorr
  0.66EVRG Evergy,PairCorr
  0.77AEE Ameren CorpPairCorr

Moving against American Stock

  0.51ES Eversource EnergyPairCorr
  0.38FE FirstEnergyPairCorr
  0.37CWT California Water ServicePairCorr
  0.31AWK American Water WorksPairCorr
  0.52ELPC Companhia Paranaense Downward RallyPairCorr
  0.39AQN Algonquin Power UtilitiesPairCorr
  0.38AES AESPairCorr
  0.36RNWWW ReNew Energy GlobalPairCorr
  0.34AEP American Electric PowerPairCorr

Related Correlations Analysis

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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   
CWTYORW
ARTNAYORW
AWKCWT
CWTSJW
AWKARTNA
YORWSJW
  
High negative correlations   
AWKMSEX
CWTMSEX
SJWMSEX
WTRGAWK
WTRGARTNA
AWKGWRS

Risk-Adjusted Indicators

There is a big difference between American Stock performing well and American States 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 States' 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.