Edison International Correlations

EIX Stock

USD 88.36 0.62 0.71%

The current 90-days correlation between Edison International and DTE Energy is 0.57 (i.e., Very weak diversification). The correlation of Edison International 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.

Edison International Correlation With Market

Average diversification

The correlation between Edison International and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Edison International and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Edison International. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.

For more information on how to buy Edison Stock please use our How to Invest in Edison International guide.

Moving together with Edison Stock

0.67

FTS

Fortis Inc

Pair Corr

Related Correlations Analysis

	DTE	AEE	CNP	PNW	CMS	IDA
DTE		-0.07	0.03	-0.28	0.88	-0.51	DTE
AEE	-0.07		0.96	0.7	0.28	0.81	AEE
CNP	0.03	0.96		0.59	0.35	0.71	CNP
PNW	-0.28	0.7	0.59		0.01	0.84	PNW
CMS	0.88	0.28	0.35	0.01		-0.22	CMS
IDA	-0.51	0.81	0.71	0.84	-0.22		IDA
	DTE	AEE	CNP	PNW	CMS	IDA

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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

CNP	+ 0.96	AEE
CMS	+ 0.88	DTE
IDA	+ 0.84	PNW
IDA	+ 0.81	AEE
IDA	+ 0.71	CNP
PNW	+ 0.7	AEE

High negative correlations

IDA	- 0.51	DTE
PNW	- 0.28	DTE
IDA	- 0.22	CMS
AEE	- 0.07	DTE

Risk-Adjusted Indicators

There is a big difference between Edison Stock performing well and Edison International 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 Edison International'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
DTE	0.79	0.03	(0.05)	0.45	1.40	(0.65)	1.44	(2.13)	5.21
AEE	0.84	0.22	0.14	1.49	0.59	(1.01)	1.91	(1.39)	6.03
CNP	0.87	0.28	0.13	29.22	0.95	(0.98)	1.80	(1.74)	5.92
PNW	0.83	0.10	0.03	0.35	0.77	(0.91)	1.99	(1.48)	4.99
CMS	0.69	0.06	(0.04)	1.01	0.99	(0.67)	1.34	(1.88)	3.94
IDA	0.79	0.23	0.21	0.85	0.35	(0.99)	2.29	(0.96)	4.14

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