Correlation Between Middlesex Water and UNITIL
Can any of the company-specific risk be diversified away by investing in both Middlesex Water and UNITIL 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 Middlesex Water and UNITIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Middlesex Water and UNITIL, you can compare the effects of market volatilities on Middlesex Water and UNITIL 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 Middlesex Water with a short position of UNITIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Middlesex Water and UNITIL.
Diversification Opportunities for Middlesex Water and UNITIL
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Middlesex and UNITIL is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Middlesex Water and UNITIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITIL and Middlesex Water 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 Middlesex Water are associated (or correlated) with UNITIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITIL has no effect on the direction of Middlesex Water i.e., Middlesex Water and UNITIL go up and down completely randomly.
Pair Corralation between Middlesex Water and UNITIL
Given the investment horizon of 90 days Middlesex Water is expected to under-perform the UNITIL. In addition to that, Middlesex Water is 2.29 times more volatile than UNITIL. It trades about -0.02 of its total potential returns per unit of risk. UNITIL is currently generating about 0.08 per unit of volatility. If you would invest 4,638 in UNITIL on August 25, 2025 and sell it today you would earn a total of 266.00 from holding UNITIL or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Middlesex Water vs. UNITIL
Performance |
| Timeline |
| Middlesex Water |
| UNITIL |
Middlesex Water and UNITIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Middlesex Water and UNITIL
The main advantage of trading using opposite Middlesex Water and UNITIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Middlesex Water position performs unexpectedly, UNITIL 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 UNITIL will offset losses from the drop in UNITIL's long position.| Middlesex Water vs. UNITIL | Middlesex Water vs. Entergy Arkansas LLC | Middlesex Water vs. Artesian Resources | Middlesex Water vs. Consolidated Water Co |
| UNITIL vs. Middlesex Water | UNITIL vs. Entergy Arkansas LLC | UNITIL vs. Energy Vault Holdings | UNITIL vs. Consolidated Water Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |