Correlation Between GCM Resources and Standard Uranium

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

By analyzing existing cross correlation between GCM Resources Plc and Standard Uranium, you can compare the effects of market volatilities on GCM Resources and Standard Uranium 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 GCM Resources with a short position of Standard Uranium. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Resources and Standard Uranium.

Diversification Opportunities for GCM Resources and Standard Uranium

0.0

Correlation Coefficient

GCM Resources  Standard Uranium

Pay attention - limited upside

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

Pair Corralation between GCM Resources and Standard Uranium

If you would invest  4.00  in GCM Resources Plc on September 3, 2025 and sell it today you would earn a total of  0.00  from holding GCM Resources Plc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GCM Resources Plc  vs.  Standard Uranium

GCM Resources Plc

Risk-Adjusted Performance

Weakest

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

Standard Uranium

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Standard Uranium are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Standard Uranium reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GCM Resources and Standard Uranium

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

The idea behind GCM Resources Plc and Standard Uranium 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.