Correlation Between 49 North and Flow Capital

Can any of the company-specific risk be diversified away by investing in both 49 North and Flow Capital 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 49 North and Flow Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 49 North Resources and Flow Capital Corp, you can compare the effects of market volatilities on 49 North and Flow Capital 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 49 North with a short position of Flow Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of 49 North and Flow Capital.

Diversification Opportunities for 49 North and Flow Capital

0.0

Correlation Coefficient

49 North  Flow Capital

Pay attention - limited upside

The 3 months correlation between FNINF and Flow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 49 North Resources and Flow Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Capital Corp and 49 North 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 49 North Resources are associated (or correlated) with Flow Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Capital Corp has no effect on the direction of 49 North i.e., 49 North and Flow Capital go up and down completely randomly.

Pair Corralation between 49 North and Flow Capital

If you would invest  0.08  in 49 North Resources on April 22, 2025 and sell it today you would earn a total of  0.00  from holding 49 North Resources or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

49 North Resources  vs.  Flow Capital Corp

49 North Resources

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 49 North Resources are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, 49 North reported solid returns over the last few months and may actually be approaching a breakup point.

Flow Capital Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flow Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Flow Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with 49 North and Flow Capital

The main advantage of trading using opposite 49 North and Flow Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 49 North position performs unexpectedly, Flow Capital 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 Flow Capital will offset losses from the drop in Flow Capital's long position.

The idea behind 49 North Resources and Flow Capital Corp 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.