| MBCC Etf | | | USD 36.74 0.00 0.00% |
The current 90-days correlation between Northern Lights and Sterling Capital Focus is 0.84 (i.e., Very 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.
Northern Lights Correlation With Market
Almost no diversification
The correlation between Northern Lights and DJI is 0.91 (i.e., Almost no 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 etf could be closely tied with the direction of predictive economic indicators such as
signals in main economic indicators.
For information on how to trade Northern Etf refer to our
How to Trade Northern Etf guide.