Norfolk Southern Correlations

NSC Stock

USD 231.75 1.79 0.77%

The current 90-days correlation between Norfolk Southern and Union Pacific is -0.02 (i.e., Good diversification). The correlation of Norfolk Southern 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.

Norfolk Southern Correlation With Market

Significant diversification

The correlation between Norfolk Southern and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Norfolk Southern 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 Norfolk Southern. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.

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

Moving together with Norfolk Stock

0.75	CP	Canadian Pacific Railway	Pair Corr
0.71	ODFL	Old Dominion Freight	Pair Corr
0.77	SNCY	Sun Country Airlines	Pair Corr
0.61	R	Ryder System	Pair Corr
0.87	CR	Crane Company	Pair Corr

Moving against Norfolk Stock

0.46

General Dynamics

Pair Corr

Related Correlations Analysis

	UNP	CP	CNI	WAB	CSX	TRN	GBX	FSTR
UNP		0.82	0.19	0.07	0.15	-0.08	-0.1	0.01	UNP
CP	0.82		0.57	0.39	0.39	0.27	0.21	0.32	CP
CNI	0.19	0.57		0.73	0.77	0.77	0.72	0.78	CNI
WAB	0.07	0.39	0.73		0.71	0.91	0.9	0.74	WAB
CSX	0.15	0.39	0.77	0.71		0.81	0.73	0.9	CSX
TRN	-0.08	0.27	0.77	0.91	0.81		0.97	0.82	TRN
GBX	-0.1	0.21	0.72	0.9	0.73	0.97		0.73	GBX
FSTR	0.01	0.32	0.78	0.74	0.9	0.82	0.73		FSTR
	UNP	CP	CNI	WAB	CSX	TRN	GBX	FSTR

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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

GBX	+ 0.97	TRN
TRN	+ 0.91	WAB
GBX	+ 0.9	WAB
FSTR	+ 0.9	CSX
CP	+ 0.82	UNP
FSTR	+ 0.82	TRN

High negative correlations

GBX	- 0.1	UNP
TRN	- 0.08	UNP

Risk-Adjusted Indicators

There is a big difference between Norfolk Stock performing well and Norfolk Southern 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 Norfolk Southern'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
UNP	0.95	0.07	0.06	0.02	1.36	(0.92)	1.65	(2.07)	9.43
CP	1.34	0.06	0.00	(0.01)	0.00	0.00	3.29	(2.62)	9.92
CNI	1.11	(0.05)	0.00	(0.13)	0.00	0.00	2.13	(2.79)	7.67
WAB	1.34	(0.04)	0.00	(0.10)	0.00	0.00	2.30	(3.77)	12.32
CSX	0.98	(0.16)	0.00	(3.04)	0.00	0.00	1.58	(2.84)	6.57
TRN	1.49	(0.34)	0.00	(1.44)	0.00	0.00	2.44	(3.64)	11.94
GBX	1.53	(0.30)	0.00	(6.78)	0.00	0.00	2.82	(3.63)	9.05
FSTR	2.16	(0.34)	0.00	(0.27)	0.00	0.00	3.64	(4.76)	17.09

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