BKH vs NWE: Correlation
Measured on weekly returns over the past three years, Black Hills Corporation (BKH) and NorthWestern Energy Group, Inc. (NWE) carry a correlation of 0.85, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BKH and NWE?
Over the past 3 years, BKH and NWE moved with a correlation of 0.85, which is very strong, meaning they move nearly in lockstep. Lately the two have moved closer together, with the 1-year correlation at 0.98 versus 0.85 over 3 years. Over 5 years the correlation is 0.80, and the annualized covariance of weekly returns is 381.0 %².
Few assets follow BKH as closely as NWE, which ranks #1 of 13 tracked partners. Neither side won the trailing year by much: +26.5% against +28.5%.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
BKH vs NWE: side by side
| BKH (Black Hills Corporation) | NWE (NorthWestern Energy Group, Inc.) | |
|---|---|---|
| 1-year return | +26.5% | +28.5% |
| 5-year return | +27.4% | +41.5% |
| Volatility (ann.) | 21.5% | 20.9% |
| Beta vs S&P 500 | 0.32 | 0.26 |
| Max drawdown (3Y) | -14.1% | -13.6% |
| Market cap | $5.6B | $4.4B |
| P/E (trailing) | 18.5 | 25.6 |
| Dividend yield | 3.74% | 3.72% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BKH | NWE |
|---|---|---|
| 2022 | +3.1% | +8.5% |
| 2023 | -19.9% | -10.1% |
| 2024 | +13.6% | +10.5% |
| 2025 | +23.9% | +26.4% |
| 2026 | +8.8% | +13.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BKH and NWE good diversifiers for each other?
Not really. At 0.85, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between BKH and NWE?
Using weekly returns as of 2026-08-27: 0.85 over 3 years, with 0.98 over the last year and 0.80 over 5 years.
Is NWE a good diversifier for BKH?
Not really. At 0.85, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.85 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: BKH correlations · NWE correlations
