Correlation Between E79 Resources and Global Li

Can any of the company-specific risk be diversified away by investing in both E79 Resources and Global Li 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 E79 Resources and Global Li into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between E79 Resources Corp and Global Li Ion Graphite, you can compare the effects of market volatilities on E79 Resources and Global Li 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 E79 Resources with a short position of Global Li. Check out your portfolio center. Please also check ongoing floating volatility patterns of E79 Resources and Global Li.

Diversification Opportunities for E79 Resources and Global Li

0.0

Correlation Coefficient

E79 Resources  Global Li

Pay attention - limited upside

The 3 months correlation between E79 and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E79 Resources Corp and Global Li Ion Graphite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Li Ion and E79 Resources 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 E79 Resources Corp are associated (or correlated) with Global Li. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Li Ion has no effect on the direction of E79 Resources i.e., E79 Resources and Global Li go up and down completely randomly.

Pair Corralation between E79 Resources and Global Li

If you would invest  11.00  in E79 Resources Corp on May 6, 2025 and sell it today you would earn a total of  0.00  from holding E79 Resources Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

E79 Resources Corp  vs.  Global Li Ion Graphite

E79 Resources Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days E79 Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, E79 Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Global Li Ion

Risk-Adjusted Performance

Very Weak

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

Pair Trading with E79 Resources and Global Li

The main advantage of trading using opposite E79 Resources and Global Li positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E79 Resources position performs unexpectedly, Global Li 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 Global Li will offset losses from the drop in Global Li's long position.

The idea behind E79 Resources Corp and Global Li Ion Graphite 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.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.