Correlation Between 49 North and Prime Dividend

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Can any of the company-specific risk be diversified away by investing in both 49 North and Prime Dividend 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 Prime Dividend 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 Prime Dividend Corp, you can compare the effects of market volatilities on 49 North and Prime Dividend 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 Prime Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of 49 North and Prime Dividend.

Diversification Opportunities for 49 North and Prime Dividend

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between 49 North and Prime Dividend

Assuming the 90 days horizon 49 North is expected to generate 1.03 times less return on investment than Prime Dividend. In addition to that, 49 North is 5.8 times more volatile than Prime Dividend Corp. It trades about 0.03 of its total potential returns per unit of risk. Prime Dividend Corp is currently generating about 0.21 per unit of volatility. If you would invest  901.00  in Prime Dividend Corp on August 27, 2025 and sell it today you would earn a total of  163.00  from holding Prime Dividend Corp or generate 18.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

49 North Resources  vs.  Prime Dividend Corp

 Performance 
       Timeline  
49 North Resources 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in 49 North Resources are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, 49 North showed solid returns over the last few months and may actually be approaching a breakup point.
Prime Dividend Corp 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Prime Dividend Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Prime Dividend displayed solid returns over the last few months and may actually be approaching a breakup point.

49 North and Prime Dividend Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 49 North and Prime Dividend

The main advantage of trading using opposite 49 North and Prime Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 49 North position performs unexpectedly, Prime Dividend 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 Prime Dividend will offset losses from the drop in Prime Dividend's long position.
The idea behind 49 North Resources and Prime Dividend 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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