Correlation Between Eversource Energy and Artesian Resources

Can any of the company-specific risk be diversified away by investing in both Eversource Energy and Artesian Resources at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eversource Energy and Artesian Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eversource Energy and Artesian Resources, you can compare the effects of market volatilities on Eversource Energy and Artesian Resources and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Eversource Energy with a short position of Artesian Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eversource Energy and Artesian Resources.

Diversification Opportunities for Eversource Energy and Artesian Resources

-0.13

Correlation Coefficient

Eversource Energy  Artesian Resources

Good diversification

The 3 months correlation between Eversource and Artesian is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Eversource Energy and Artesian Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artesian Resources and Eversource Energy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Eversource Energy are associated (or correlated) with Artesian Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artesian Resources has no effect on the direction of Eversource Energy i.e., Eversource Energy and Artesian Resources go up and down completely randomly.

Pair Corralation between Eversource Energy and Artesian Resources

Allowing for the 90-day total investment horizon Eversource Energy is expected to generate 0.99 times more return on investment than Artesian Resources. However, Eversource Energy is 1.01 times less risky than Artesian Resources. It trades about 0.08 of its potential returns per unit of risk. Artesian Resources is currently generating about 0.02 per unit of risk. If you would invest  6,149  in Eversource Energy on May 11, 2025 and sell it today you would earn a total of  355.00  from holding Eversource Energy or generate 5.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Eversource Energy  vs.  Artesian Resources

Eversource Energy

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Eversource Energy are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Eversource Energy is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Artesian Resources

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Artesian Resources are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Artesian Resources is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Eversource Energy and Artesian Resources

The main advantage of trading using opposite Eversource Energy and Artesian Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eversource Energy position performs unexpectedly, Artesian Resources can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Artesian Resources will offset losses from the drop in Artesian Resources' long position.

The idea behind Eversource Energy and Artesian Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.