Northern Lights Correlations

BTR Etf

27.39 0.25 0.92%

The current 90-days correlation between Northern Lights and Karat Packaging is 0.74 (i.e., Poor diversification). The correlation of Northern Lights is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Northern Lights Correlation With Market

Very weak diversification

The correlation between Northern Lights and DJI is 0.43 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Northern Lights and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Northern Lights. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in estimate.

To learn how to invest in Northern Etf, please use our How to Invest in Northern Lights guide.

Moving together with Northern Etf

0.94	TDSC	Cabana Target Drawdown	Pair Corr
0.92	YYY	Amplify High Income	Pair Corr
0.86	FVC	First Trust Dorsey	Pair Corr
0.88	TDSB	Cabana Target Drawdown	Pair Corr
0.86	GMOM	Cambria Global Momentum	Pair Corr
0.85	AGOX	Adaptive Alpha Oppor	Pair Corr
0.86	TACK	Fairlead Tactical Sector	Pair Corr
0.91	DALI	First Trust Dorsey	Pair Corr
0.72	PMBS	PIMCO Mortgage Backed	Pair Corr
0.77	SIXD	AIM ETF Products	Pair Corr
0.83	CEFD	ETRACS Monthly Pay	Pair Corr
0.89	RFDA	RiverFront Dynamic	Pair Corr
0.7	BAC	Bank of America Sell-off Trend	Pair Corr
0.81	CAT	Caterpillar Earnings Call This Week	Pair Corr
0.72	TRV	The Travelers Companies	Pair Corr
0.91	HD	Home Depot	Pair Corr
0.61	VZ	Verizon Communications	Pair Corr

Moving against Northern Etf

0.49

PFE

Pfizer Inc Earnings Call This Week

Pair Corr

Related Correlations Analysis

	KRT	PP	FFA	WEA	NXL
KRT		0.3	0.84	0.31	0.5	KRT
PP	0.3		0.14	0.42	0.51	PP
FFA	0.84	0.14		0.21	0.23	FFA
WEA	0.31	0.42	0.21		0.24	WEA
NXL	0.5	0.51	0.23	0.24		NXL
	KRT	PP	FFA	WEA	NXL

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Northern Lights Constituents Risk-Adjusted Indicators

There is a big difference between Northern Etf performing well and Northern Lights ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Northern Lights' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
KRT	1.35	0.21	0.10	0.34	1.56	(1.35)	3.51	(2.86)	14.46
PP	1.13	(0.10)	0.00	(0.08)	0.00	0.00	2.39	(2.09)	9.37
FFA	0.53	0.02	(0.06)	0.18	0.68	(0.57)	1.13	(1.24)	4.03
WEA	0.58	0.01	(0.07)	0.16	0.71	(0.65)	1.75	(1.27)	3.93
NXL	6.23	0.64	0.09	0.60	6.86	(7.18)	13.71	(12.64)	42.14

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