NewJersey Resources Correlations

NJR Stock

USD 48.48 0.70 1.42%

The current 90-days correlation between NewJersey Resources and Atmos Energy is 0.77 (i.e., Poor diversification). The correlation of NewJersey Resources 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.

NewJersey Resources Correlation With Market

Modest diversification

The correlation between NewJersey Resources and DJI is 0.26 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding NewJersey Resources 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 NewJersey Resources. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in inflation.

To learn how to invest in NewJersey Stock, please use our How to Invest in NewJersey Resources guide.

Moving together with NewJersey Stock

0.72	SR	Spire Inc	Pair Corr
0.72	ATO	Atmos Energy	Pair Corr
0.73	BKH	Black Hills	Pair Corr
0.79	CPK	Chesapeake Utilities	Pair Corr
0.73	NWN	Northwest Natural Gas	Pair Corr
0.76	OGS	One Gas	Pair Corr
0.81	ED	Consolidated Edison	Pair Corr
0.72	SO	Southern	Pair Corr
0.63	CMS-PB	Consumers Energy	Pair Corr
0.63	EVRG	Evergy,	Pair Corr
0.75	WTRG	Essential Utilities	Pair Corr
0.64	AEE	Ameren Corp	Pair Corr
0.62	AEP	American Electric Power	Pair Corr

Moving against NewJersey Stock

0.79	OPAL	OPAL Fuels	Pair Corr
0.6	CTRI	Centuri Holdings,	Pair Corr
0.54	NFE	New Fortress Energy	Pair Corr
0.45	BIPC	Brookfield Infrastructure	Pair Corr
0.61	BIP	Brookfield Infrastructure	Pair Corr
0.48	RNWWW	ReNew Energy Global	Pair Corr
0.43	WAVE	Eco Wave Power	Pair Corr

Related Correlations Analysis

	ATO	UGI	CPK	SR	UGIC	OGS	RGCO	NIMC	NI
ATO		0.92	0.85	0.96	0.0	0.97	0.31	0.0	0.94	ATO
UGI	0.92		0.75	0.96	0.0	0.87	0.45	0.0	0.93	UGI
CPK	0.85	0.75		0.84	0.0	0.88	0.35	0.0	0.72	CPK
SR	0.96	0.96	0.84		0.0	0.92	0.39	0.0	0.92	SR
UGIC	0.0	0.0	0.0	0.0		0.0	0.0	0.0	0.0	UGIC
OGS	0.97	0.87	0.88	0.92	0.0		0.21	0.0	0.88	OGS
RGCO	0.31	0.45	0.35	0.39	0.0	0.21		0.0	0.32	RGCO
NIMC	0.0	0.0	0.0	0.0	0.0	0.0	0.0		0.0	NIMC
NI	0.94	0.93	0.72	0.92	0.0	0.88	0.32	0.0		NI
	ATO	UGI	CPK	SR	UGIC	OGS	RGCO	NIMC	NI

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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

OGS	+ 0.97	ATO
SR	+ 0.96	ATO
SR	+ 0.96	UGI
NI	+ 0.94	ATO
NI	+ 0.93	UGI
UGI	+ 0.92	ATO

High negative correlations

NI	- 0.0	NIMC
NIMC	- 0.0	RGCO
NIMC	- 0.0	OGS
NI	- 0.0	UGIC
NIMC	- 0.0	UGIC
RGCO	- 0.0	UGIC

Risk-Adjusted Indicators

There is a big difference between NewJersey Stock performing well and NewJersey Resources 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 NewJersey Resources' 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
ATO	0.95	0.11	0.13	0.27	1.12	(1.02)	1.96	(1.77)	5.33
UGI	1.05	0.31	0.25	0.36	1.02	(1.15)	2.38	(2.00)	6.74
CPK	1.01	0.01	0.00	(0.05)	0.00	0.00	2.41	(1.99)	6.12
SR	1.04	0.23	0.14	0.44	1.67	(1.02)	1.76	(2.62)	7.80
UGIC	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
OGS	1.06	0.10	0.10	0.18	1.35	(1.14)	2.31	(1.71)	5.20
RGCO	1.65	0.12	0.08	0.23	1.97	(1.81)	3.43	(3.48)	7.51
NIMC	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
NI	0.94	0.15	0.12	0.24	1.34	(0.91)	2.06	(2.27)	6.69

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