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Comparing Utilities and Broader Markets’ Volatility

Vincent Kruger
Comparing Utilities and Broader Markets’ Volatility

Xcel Energy versus Consolidated Edison in 2019(Continued from Prior Part)## Implied volatilityXcel Energy (XEL) and Consolidated Edison (ED) are some of the stable stocks among their peers. On January 10, both of the stocks had implied volatility levels close to 20%, which is lower than their respective 15-day volatilities. The Utilities Select Sector SPDR ETF (XLU) had an implied volatility of 17%.The implied volatility represents investors’ unease. Rising volatility is usually related to falling stock prices. Broader markets witnessed increased volatility in the last few months. Usually, broader markets’ implied volatility levels are lower than utilities at large. Recently, the S&P 500 had an implied volatility of 17%.Recently, the implied volatility of top utilities including Southern Company (SO) and Duke Energy (DUK) was close to 18%.To learn about broader utilities’ (XLU) chart indicators and where they might go in the near term, read XLU: What to Expect from Utilities in 2019.Next, we’ll discuss Xcel Energy and Consolidated Edison’s target prices.Continue to Next PartBrowse this series on Market Realist: * Part 1 - Xcel Energy versus Consolidated Edison in 2019 * Part 2 - Xcel Energy’s Total Returns Outperformed Its Peers * Part 3 - Xcel Energy and Consolidated Edison’s Dividend Profiles