Correlation Between Caldwell Partners and Northland Power
Can any of the company-specific risk be diversified away by investing in both Caldwell Partners and Northland Power at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Caldwell Partners and Northland Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caldwell Partners International and Northland Power, you can compare the effects of market volatilities on Caldwell Partners and Northland Power and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Caldwell Partners with a short position of Northland Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caldwell Partners and Northland Power.
Diversification Opportunities for Caldwell Partners and Northland Power
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Caldwell and Northland is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Caldwell Partners Internationa and Northland Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northland Power and Caldwell Partners is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Caldwell Partners International are associated (or correlated) with Northland Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northland Power has no effect on the direction of Caldwell Partners i.e., Caldwell Partners and Northland Power go up and down completely randomly.
Pair Corralation between Caldwell Partners and Northland Power
Assuming the 90 days trading horizon Caldwell Partners International is expected to generate 0.85 times more return on investment than Northland Power. However, Caldwell Partners International is 1.17 times less risky than Northland Power. It trades about 0.21 of its potential returns per unit of risk. Northland Power is currently generating about -0.08 per unit of risk. If you would invest 67.00 in Caldwell Partners International on September 8, 2025 and sell it today you would earn a total of 34.00 from holding Caldwell Partners International or generate 50.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caldwell Partners Internationa vs. Northland Power
Performance |
| Timeline |
| Caldwell Partners |
| Northland Power |
Caldwell Partners and Northland Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caldwell Partners and Northland Power
The main advantage of trading using opposite Caldwell Partners and Northland Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caldwell Partners position performs unexpectedly, Northland Power can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Northland Power will offset losses from the drop in Northland Power's long position.| Caldwell Partners vs. Vizsla Silver Corp | Caldwell Partners vs. Gfl Environmental Holdings | Caldwell Partners vs. Super Micro Computer, | Caldwell Partners vs. BluMetric Environmental |
| Northland Power vs. Dream Industrial Real | Northland Power vs. Precious Metals And | Northland Power vs. Leons Furniture Limited | Northland Power vs. Arbor Metals Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |