NorthWestern Correlations

NWE Stock

USD 54.40 0.13 0.24%

The current 90-days correlation between NorthWestern and Allete Inc is 0.48 (i.e., Very weak diversification). The correlation of NorthWestern 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.

NorthWestern Correlation With Market

Average diversification

The correlation between NorthWestern and DJI is 0.19 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding NorthWestern and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NorthWestern. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing.

For information on how to trade NorthWestern Stock refer to our How to Trade NorthWestern Stock guide.

Moving together with NorthWestern Stock

0.66	D	Dominion Energy	Pair Corr
0.64	ED	Consolidated Edison	Pair Corr
0.71	FE	FirstEnergy	Pair Corr
0.69	SO	Southern	Pair Corr
0.65	AEP	American Electric Power	Pair Corr
0.71	CMS	CMS Energy	Pair Corr
0.71	DUK	Duke Energy	Pair Corr
0.81	EXC	Exelon	Pair Corr
0.63	LNT	Alliant Energy Corp	Pair Corr
0.61	NEE	Nextera Energy Earnings Call This Week	Pair Corr
0.62	PEG	Public Service Enterprise	Pair Corr
0.65	POR	Portland General Electric Sell-off Trend	Pair Corr
0.66	PPL	PPL Corporation	Pair Corr
0.7	WEC	WEC Energy Group	Pair Corr

Moving against NorthWestern Stock

0.58	EDN	Empresa Distribuidora	Pair Corr
0.37	ENIC	Enel Chile SA	Pair Corr
0.48	PCG-PC	Pacific Gas	Pair Corr
0.4	PCG-PI	Pacific Gas	Pair Corr
0.32	VSTEW	Vast Renewables	Pair Corr

Related Correlations Analysis

	ALE	BKH	AESC	OTTR	AVA	ELP	AES	BIP	CIG	MNTK
ALE		-0.03	0.0	-0.21	-0.18	-0.71	-0.67	-0.31	-0.47	-0.73	ALE
BKH	-0.03		0.0	0.68	0.85	0.42	0.02	0.56	0.71	-0.08	BKH
AESC	0.0	0.0		0.0	0.0	0.0	0.0	0.0	0.0	0.0	AESC
OTTR	-0.21	0.68	0.0		0.65	0.59	0.19	0.6	0.71	0.35	OTTR
AVA	-0.18	0.85	0.0	0.65		0.62	0.21	0.58	0.68	0.21	AVA
ELP	-0.71	0.42	0.0	0.59	0.62		0.45	0.46	0.65	0.74	ELP
AES	-0.67	0.02	0.0	0.19	0.21	0.45		0.64	0.31	0.54	AES
BIP	-0.31	0.56	0.0	0.6	0.58	0.46	0.64		0.61	0.28	BIP
CIG	-0.47	0.71	0.0	0.71	0.68	0.65	0.31	0.61		0.37	CIG
MNTK	-0.73	-0.08	0.0	0.35	0.21	0.74	0.54	0.28	0.37		MNTK
	ALE	BKH	AESC	OTTR	AVA	ELP	AES	BIP	CIG	MNTK

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

AVA	+ 0.85	BKH
MNTK	+ 0.74	ELP
CIG	+ 0.71	BKH
CIG	+ 0.71	OTTR
OTTR	+ 0.68	BKH
CIG	+ 0.68	AVA

High negative correlations

MNTK	- 0.73	ALE
ELP	- 0.71	ALE
AES	- 0.67	ALE
CIG	- 0.47	ALE
BIP	- 0.31	ALE
OTTR	- 0.21	ALE

Risk-Adjusted Indicators

There is a big difference between NorthWestern Stock performing well and NorthWestern Company 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 NorthWestern's 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
ALE	0.23	0.04	0.07	0.42	0.07	(0.26)	0.81	(0.39)	1.40
BKH	0.94	(0.02)	(0.02)	(0.02)	1.17	(1.08)	2.26	(1.97)	6.51
AESC	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
OTTR	1.24	0.02	0.01	0.05	1.54	(1.36)	2.99	(2.11)	9.03
AVA	1.01	(0.02)	0.00	(0.04)	0.00	0.00	2.27	(2.33)	6.05
ELP	1.65	(0.22)	0.00	(2.49)	0.00	0.00	3.41	(4.40)	11.66
AES	1.77	(0.58)	0.00	(1.48)	0.00	0.00	3.26	(4.25)	11.98
BIP	1.09	(0.23)	0.00	(0.49)	0.00	0.00	1.91	(2.11)	8.32
CIG	1.85	(0.16)	0.00	(0.49)	0.00	0.00	3.74	(3.61)	12.13
MNTK	3.03	(0.34)	0.00	(0.39)	0.00	0.00	5.43	(5.07)	24.98

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