American Water Correlations

AWC Stock

EUR 117.80 1.60 1.34%

The current 90-days correlation between American Water Works and Aqua America is 0.38 (i.e., Weak diversification). The correlation of American Water 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.

American Water Correlation With Market

Good diversification

The correlation between American Water Works and DJI is -0.1 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Water Works and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to American Water could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Water when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Water - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Water Works to buy it.

Moving together with American Stock

0.73

SAJA

Companhia de Saneamento

Pair Corr

Moving against American Stock

0.56	GUG	Guangdong Investment	Pair Corr
0.38	CUBB	China Water Affairs	Pair Corr
0.37	7PI	Poste Italiane SpA	Pair Corr
0.57	117	Arista Networks Split	Pair Corr
0.49	83S2	SSP Group PLC	Pair Corr
0.47	WW6	WGHT WTCHER INTL	Pair Corr
0.42	NOAA	Nokia	Pair Corr
0.52	DBK	Deutsche Bank Aktien	Pair Corr
0.47	DMN	Diamyd Medical AB	Pair Corr
0.41	P5Y	BRF SA	Pair Corr
0.41	BLQA	BlackRock	Pair Corr

Related Correlations Analysis

	AWC	A2A	UUEC	SAJA	GUG	WWG	FDK	CUBB	F1P	F1P2
AWC		0.14	0.2	0.73	-0.56	0.19	0.13	-0.38	-0.15	0.02	AWC
A2A	0.14		0.76	0.19	0.59	-0.33	0.91	0.04	-0.36	-0.47	A2A
UUEC	0.2	0.76		0.24	0.41	-0.23	0.69	-0.12	-0.25	-0.4	UUEC
SAJA	0.73	0.19	0.24		-0.44	0.35	0.28	-0.58	-0.43	-0.23	SAJA
GUG	-0.56	0.59	0.41	-0.44		-0.47	0.53	0.33	-0.17	-0.34	GUG
WWG	0.19	-0.33	-0.23	0.35	-0.47		-0.19	-0.24	-0.01	0.2	WWG
FDK	0.13	0.91	0.69	0.28	0.53	-0.19		-0.08	-0.46	-0.55	FDK
CUBB	-0.38	0.04	-0.12	-0.58	0.33	-0.24	-0.08		0.35	0.38	CUBB
F1P	-0.15	-0.36	-0.25	-0.43	-0.17	-0.01	-0.46	0.35		0.67	F1P
F1P2	0.02	-0.47	-0.4	-0.23	-0.34	0.2	-0.55	0.38	0.67		F1P2
	AWC	A2A	UUEC	SAJA	GUG	WWG	FDK	CUBB	F1P	F1P2

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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

FDK	+ 0.91	A2A
UUEC	+ 0.76	A2A
SAJA	+ 0.73	AWC
FDK	+ 0.69	UUEC
F1P2	+ 0.67	F1P
GUG	+ 0.59	A2A

High negative correlations

CUBB	- 0.58	SAJA
GUG	- 0.56	AWC
F1P2	- 0.55	FDK
WWG	- 0.47	GUG
F1P2	- 0.47	A2A
F1P	- 0.46	FDK

Risk-Adjusted Indicators

There is a big difference between American Stock performing well and American Water 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 Water'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
AWC	1.22	(0.17)	0.00	0.87	0.00	0.00	2.20	(3.34)	8.06
A2A	0.99	0.06	0.03	0.60	1.21	(1.09)	1.61	(2.04)	10.96
UUEC	1.08	0.04	0.01	0.16	1.22	(1.48)	2.34	(2.37)	6.37
SAJA	1.52	(0.26)	0.00	(1.58)	0.00	0.00	2.80	(4.11)	10.16
GUG	3.42	1.47	0.37	1.50	2.27	(5.52)	10.00	(4.05)	50.00
WWG	1.68	(0.09)	0.00	0.26	0.00	0.00	4.81	(4.72)	14.17
FDK	1.04	0.01	0.00	0.07	1.13	(1.26)	2.16	(2.05)	7.20
CUBB	3.04	0.83	0.22	3.08	2.44	(5.03)	5.77	(5.00)	47.67
F1P	1.11	0.07	0.01	0.18	1.88	(4.69)	4.17	(4.00)	19.11
F1P2	0.91	0.00	0.00	0.03	1.60	(5.05)	4.17	(4.00)	13.09

Be your own money manager

Our tools can tell you how much better you can do entering a position in American Water without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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