Correlation Between M3 Metals and Global Energy

Can any of the company-specific risk be diversified away by investing in both M3 Metals and Global Energy 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 M3 Metals and Global Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between M3 Metals Corp and Global Energy Metals, you can compare the effects of market volatilities on M3 Metals and Global Energy 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 M3 Metals with a short position of Global Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of M3 Metals and Global Energy.

Diversification Opportunities for M3 Metals and Global Energy

0.0

Correlation Coefficient

M3 Metals  Global Energy

Pay attention - limited upside

The 3 months correlation between MLGCF and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding M3 Metals Corp and Global Energy Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Energy Metals and M3 Metals 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 M3 Metals Corp are associated (or correlated) with Global Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Energy Metals has no effect on the direction of M3 Metals i.e., M3 Metals and Global Energy go up and down completely randomly.

Pair Corralation between M3 Metals and Global Energy

If you would invest  2.22  in Global Energy Metals on August 26, 2025 and sell it today you would earn a total of  0.46  from holding Global Energy Metals or generate 20.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

M3 Metals Corp  vs.  Global Energy Metals

M3 Metals Corp

Risk-Adjusted Performance

Fair

Over the last 90 days M3 Metals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, M3 Metals is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Global Energy Metals

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Global Energy Metals are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Global Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with M3 Metals and Global Energy

The main advantage of trading using opposite M3 Metals and Global Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if M3 Metals position performs unexpectedly, Global Energy 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 Energy will offset losses from the drop in Global Energy's long position.

The idea behind M3 Metals Corp and Global Energy Metals 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.