Nextera Energy Correlations

NEE Stock

USD 71.15 0.65 0.92%

The current 90-days correlation between Nextera Energy and Morgan Advanced Materials is -0.2 (i.e., Good diversification). The correlation of Nextera Energy 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.

Nextera Energy Correlation With Market

Significant diversification

The correlation between Nextera Energy and DJI is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Nextera Energy and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Nextera Energy. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.

For information on how to trade Nextera Stock refer to our How to Trade Nextera Stock guide.

Moving together with Nextera Stock

0.64

POR

Portland General Electric

Pair Corr

Moving against Nextera Stock

0.64	TLN	Talen Energy	Pair Corr
0.47	PCG-PC	Pacific Gas	Pair Corr

Related Correlations Analysis

	MCRUF	EGO	PFLT	KALU	ALDF	AVNT	JUVF	APAM
MCRUF		0.48	-0.67	0.53	-0.62	0.43	0.2	0.52	MCRUF
EGO	0.48		-0.51	0.37	-0.22	0.2	-0.33	0.16	EGO
PFLT	-0.67	-0.51		-0.05	0.65	0.02	-0.1	-0.07	PFLT
KALU	0.53	0.37	-0.05		0.04	0.74	-0.03	0.61	KALU
ALDF	-0.62	-0.22	0.65	0.04		0.23	-0.11	0.03	ALDF
AVNT	0.43	0.2	0.02	0.74	0.23		0.14	0.87	AVNT
JUVF	0.2	-0.33	-0.1	-0.03	-0.11	0.14		0.33	JUVF
APAM	0.52	0.16	-0.07	0.61	0.03	0.87	0.33		APAM
	MCRUF	EGO	PFLT	KALU	ALDF	AVNT	JUVF	APAM

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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

APAM	+ 0.87	AVNT
AVNT	+ 0.74	KALU
ALDF	+ 0.65	PFLT
APAM	+ 0.61	KALU
KALU	+ 0.53	MCRUF
APAM	+ 0.52	MCRUF

High negative correlations

PFLT	- 0.67	MCRUF
ALDF	- 0.62	MCRUF
PFLT	- 0.51	EGO
JUVF	- 0.33	EGO
ALDF	- 0.22	EGO
JUVF	- 0.11	ALDF

Risk-Adjusted Indicators

There is a big difference between Nextera Stock performing well and Nextera Energy 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 Nextera Energy'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
MCRUF	0.72	(0.27)	0.00	3.07	0.00	0.00	0.00	(2.15)	11.29
EGO	2.07	(0.07)	0.00	(0.25)	0.00	0.00	4.42	(5.33)	16.79
PFLT	0.66	0.10	0.16	0.14	0.81	(0.70)	1.45	(1.28)	4.56
KALU	1.50	(0.12)	0.00	(0.31)	0.00	0.00	3.07	(3.37)	9.62
ALDF	0.08	0.02	0.59	1.20	0.00	(0.15)	0.20	(0.10)	0.50
AVNT	1.45	(0.18)	0.00	(0.23)	0.00	0.00	2.89	(2.40)	8.24
JUVF	1.68	0.02	0.03	0.34	2.37	(2.00)	3.76	(3.63)	13.06
APAM	1.47	(0.09)	0.00	(0.14)	0.00	0.00	2.39	(3.39)	9.44

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