Northern Lights Correlations

DUKZ Etf   24.91  0.03  0.12%   
The current 90-days correlation between Northern Lights and MFS Active Core is 0.69 (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

Good diversification

The correlation between Northern Lights and DJI is -0.12 (i.e., Good 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 Investing Opportunities 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 industry.
For more information on how to buy Northern Etf please use our How to Invest in Northern Lights guide.

Moving together with Northern Etf

  0.64VUG Vanguard Growth IndexPairCorr
  0.68WTRE WisdomTree New EconomyPairCorr
  0.81CRED Columbia ETF TrustPairCorr

Moving against Northern Etf

  0.61MNA IQ Merger ArbitragePairCorr
  0.57BOIL ProShares Ultra Bloomberg Downward RallyPairCorr
  0.51CGUI Capital Group FixedPairCorr
  0.47SPAQ Horizon Kinetics SPACPairCorr
  0.41COMT iShares GSCI CommodityPairCorr
  0.71TWM ProShares UltraShortPairCorr
  0.64PSQ ProShares Short QQQ Sell-off TrendPairCorr
  0.58DWSH AdvisorShares DorseyPairCorr
  0.57BSCP Invesco BulletShares 2025PairCorr
  0.54FLDB Fidelity Low DurationPairCorr
  0.43GSG iShares SP GSCIPairCorr
  0.41SCHO Schwab Short TermPairCorr
  0.37USTB VictoryShares USAA CorePairCorr

Related Correlations Analysis

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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   
JPMMETA
TUBER
CRMA
UBERMETA
JPMA
MRKF
  
High negative correlations   
MRKUBER
MRKMETA
TMSFT
MRKT
MRKJPM
UBERMSFT

Northern Lights Competition 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 DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
META  1.57  0.12  0.06  0.03  2.16 
 2.96 
 8.90 
MSFT  1.10 (0.14) 0.00 (0.31) 0.00 
 2.58 
 10.31 
UBER  1.93  0.23  0.10  0.33  2.40 
 4.72 
 12.75 
F  1.44  0.06  0.00 (0.04) 0.00 
 2.71 
 10.14 
T  1.04  0.28  0.18  0.42  1.60 
 1.90 
 11.66 
A  1.17 (0.06) 0.00 (0.16) 0.00 
 3.26 
 9.03 
CRM  1.41 (0.21) 0.00 (0.31) 0.00 
 2.82 
 8.88 
JPM  1.09  0.05  0.00 (0.05) 0.00 
 1.99 
 6.85 
MRK  1.21 (0.11) 0.00  2.40  0.00 
 2.07 
 11.58 
XOM  1.06  0.10  0.14 (0.59) 1.31 
 2.55 
 5.89