Correlation Between Northstar Clean and Kelso Technologies

Can any of the company-specific risk be diversified away by investing in both Northstar Clean and Kelso Technologies 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 Northstar Clean and Kelso Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Northstar Clean Technologies and Kelso Technologies, you can compare the effects of market volatilities on Northstar Clean and Kelso Technologies 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 Northstar Clean with a short position of Kelso Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northstar Clean and Kelso Technologies.

Diversification Opportunities for Northstar Clean and Kelso Technologies

-0.28

Correlation Coefficient

Northstar Clean  Kelso Technologies

Very good diversification

The 3 months correlation between Northstar and Kelso is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Northstar Clean Technologies and Kelso Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelso Technologies and Northstar Clean 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 Northstar Clean Technologies are associated (or correlated) with Kelso Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelso Technologies has no effect on the direction of Northstar Clean i.e., Northstar Clean and Kelso Technologies go up and down completely randomly.

Pair Corralation between Northstar Clean and Kelso Technologies

Assuming the 90 days trading horizon Northstar Clean Technologies is expected to under-perform the Kelso Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Northstar Clean Technologies is 1.34 times less risky than Kelso Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The Kelso Technologies is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  17.00  in Kelso Technologies on May 7, 2025 and sell it today you would lose (1.00) from holding Kelso Technologies or give up 5.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Northstar Clean Technologies  vs.  Kelso Technologies

Northstar Clean Tech

Risk-Adjusted Performance

Weakest

Over the last 90 days Northstar Clean Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Kelso Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Kelso Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Kelso Technologies is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Northstar Clean and Kelso Technologies

The main advantage of trading using opposite Northstar Clean and Kelso Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northstar Clean position performs unexpectedly, Kelso Technologies 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 Kelso Technologies will offset losses from the drop in Kelso Technologies' long position.

The idea behind Northstar Clean Technologies and Kelso Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.