Correlation Between NextEra Energy, and SD Standard

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both NextEra Energy, and SD Standard 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 NextEra Energy, and SD Standard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NextEra Energy, and SD Standard Drilling, you can compare the effects of market volatilities on NextEra Energy, and SD Standard 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 NextEra Energy, with a short position of SD Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of NextEra Energy, and SD Standard.

Diversification Opportunities for NextEra Energy, and SD Standard

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between NextEra and SDSDF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NextEra Energy, and SD Standard Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SD Standard Drilling and NextEra 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 NextEra Energy, are associated (or correlated) with SD Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SD Standard Drilling has no effect on the direction of NextEra Energy, i.e., NextEra Energy, and SD Standard go up and down completely randomly.

Pair Corralation between NextEra Energy, and SD Standard

If you would invest  4,627  in NextEra Energy, on May 5, 2025 and sell it today you would earn a total of  169.00  from holding NextEra Energy, or generate 3.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

NextEra Energy,  vs.  SD Standard Drilling

 Performance 
       Timeline  
NextEra Energy, 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in NextEra Energy, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, NextEra Energy, is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
SD Standard Drilling 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days SD Standard Drilling has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, SD Standard is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

NextEra Energy, and SD Standard Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with NextEra Energy, and SD Standard

The main advantage of trading using opposite NextEra Energy, and SD Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NextEra Energy, position performs unexpectedly, SD Standard 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 SD Standard will offset losses from the drop in SD Standard's long position.
The idea behind NextEra Energy, and SD Standard Drilling 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.
Check out your portfolio center.
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Complementary Tools

Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios