RocketCap Smart Grid Stock Index© Update 5-29-09

Posted on June 1st, 2009 by admin in Smart Grid

Here are the weekly updates for our Smart Grid market indexes. It’s notable (see Figure 1) that so far, RocketCap Smart Grid Stock Index© has been tracking the S&P500, while weirdly the utility index PUI is quite uncorrelated with the S&P 500. We expect the electric utilities index (comprised of large firms), to be more correlated with S&P 500. Not true. Similarly, our RSGSI©, comprised of some big and some small firms, is more correlated so far.

Figure 1: Correlation of Returns for RSGSI©, PUI and ^GSPC

Correlations of Returns for RSGSI, PUI and ^GSPC

Correlations of Returns for RSGSI©, PUI and ^GSPC (55 days continuing returns ending 5-29-09)

We will watch with great interest as these statistics unfold over time. Here are the returns plotted for the previous 55 business days ending 29 MAR 09.

Figure 2: Annualized Returns for Smart Grid and Comparisons

Annualized Returns for RSGSI, PUI and ^GSPC (55 days continuing returns)

Annualized Returns for RSGSI, PUI and ^GSPC (55 days continuing returns ending 5-29-09)

Finally, Figure 3 shows the matrix of cross-correlations of returns of all the components of the RSGSI©.

Figure 3: Correlation Matrix of RocketCap Smart Grid Stock Index© Component Stocks

RSGSI Portfolio Correlation Matrix: 45 Days Ending 5-29-09

RSGSI Portfolio Correlation Matrix: 45 Days Ending 5-29-09

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