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Returns of Utility Stocks with High and Low Implied Volatility

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Returns of utility stocks with high implied volatility

As we saw in the previous part of this series, NRG Energy (NRG) has the highest implied volatility figure of all the utility companies. The stock has risen 20.1% on a YTD (year-to-date) basis. In the last five days, it rose 1.4%. Below are the YTD returns of the utility stocks that we identified in the previous part as having high implied volatility:

  • AES (AES) at 29.6%
  • FirstEnergy (FE) at 4.2%
  • Exelon (EXC) at 31.7%
  • American Water Works Company (AWK) at 35.8%

Here are the five-day returns for these stocks:

  • AES at 1.1%
  • FirstEnergy at -5.1%
  • Exelon at -0.1%
  • American Water Works Company at -0.4%
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Returns of utility stocks with low implied volatility

As we saw in the previous part of this series, Xcel Energy (XEL) has the lowest implied volatility figure of all the utility companies. Below are the YTD returns of Xcel Energy and the other utility stocks that we identified as having low implied volatility:

  • Xcel Energy – 20.2%
  • Southern Company (SO) – 13.4%
  • NextEra Energy (NEE) – 23.3%
  • CMS Energy (CMS) – 22.3%
  • Dominion Resources (D) – 13.5%

Now, let’s look at the five-day returns of these stocks:

  • Xcel Energy at -0.8%
  • Southern Company at -0.9%
  • NextEra Energy – 0.7%
  • CMS Energy at -0.5%
  • Dominion Resources – 0.3%

In the final part of this series, we’ll look at the utility stocks with the highest short interest-to-equity float ratios.

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