Northern Lights Correlations

NTAIX Fund  USD 10.15  0.03  0.29%   
The current 90-days correlation between Northern Lights and Guidemark Large Cap is 0.4 (i.e., Very weak 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

Weak diversification

The correlation between Northern Lights and DJI is 0.34 (i.e., 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 Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Northern Lights. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.
For more information on how to buy Northern Mutual Fund please use our How to Invest in Northern Lights guide.

Moving together with Northern Mutual Fund

  0.72NTIIX Navigator TacticalPairCorr
  0.71FBONX American Funds AmericanPairCorr
  0.71FBAFX American Funds AmericanPairCorr
  0.73ABALX American BalancedPairCorr
  0.74BALCX American BalancedPairCorr
  0.73RLBCX American BalancedPairCorr
  0.74RLBBX American BalancedPairCorr
  0.73CLBAX American BalancedPairCorr
  0.73CLBEX American BalancedPairCorr
  0.73RLBFX American BalancedPairCorr

Moving against Northern Mutual Fund

  0.6NUSIX Nuveen InfrastructurePairCorr
  0.55RYARX Inverse Sp 500 Potential GrowthPairCorr
  0.55AGIVX Invesco GovernmentPairCorr
  0.46ACCOX International ValuePairCorr
  0.36FSUGX American Funds GovernmentPairCorr
  0.34DIMIX Dreyfus Short IntermPairCorr
  0.33MFIRX Ms Global FixedPairCorr
  0.45TRIGX T Rowe PricePairCorr
  0.38VIITX Vanguard InstitutionalPairCorr
  0.37HFHCX Hartford FloatingPairCorr
  0.34OSIIX Oppenheimer Global StrtgcPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

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   
SMYIXPAGLX
SMYIXFMTIX
PBLIXFMTIX
SMYIXGGEAX
FMTIXPAGLX
GGEAXPAGLX
  
High negative correlations   
AUERXBPGSX
BPGSXPAGLX
SMYIXBPGSX

Risk-Adjusted Indicators

There is a big difference between Northern Mutual Fund performing well and Northern Lights Mutual Fund 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.