Correlation Between M3 Metals and Hanna Capital

Can any of the company-specific risk be diversified away by investing in both M3 Metals and Hanna 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 M3 Metals and Hanna Capital 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 Hanna Capital Corp, you can compare the effects of market volatilities on M3 Metals and Hanna 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 M3 Metals with a short position of Hanna Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of M3 Metals and Hanna Capital.

Diversification Opportunities for M3 Metals and Hanna Capital

0.0

Correlation Coefficient

M3 Metals  Hanna Capital

Pay attention - limited upside

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

Pair Corralation between M3 Metals and Hanna Capital

If you would invest  16.00  in M3 Metals Corp on September 7, 2025 and sell it today you would earn a total of  3.00  from holding M3 Metals Corp or generate 18.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

M3 Metals Corp  vs.  Hanna Capital Corp

M3 Metals Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in M3 Metals Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, M3 Metals reported solid returns over the last few months and may actually be approaching a breakup point.

Hanna Capital Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Hanna Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Hanna 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 M3 Metals and Hanna Capital

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

The idea behind M3 Metals Corp and Hanna 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.