Correlation Between DevEx Resources and GPM Metals

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

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

Diversification Opportunities for DevEx Resources and GPM Metals

0.0

Correlation Coefficient

DevEx Resources  GPM Metals

Pay attention - limited upside

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

Pair Corralation between DevEx Resources and GPM Metals

If you would invest  7.56  in GPM Metals on August 5, 2025 and sell it today you would earn a total of  4.44  from holding GPM Metals or generate 58.73% return on investment over 90 days.

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

DevEx Resources Limited  vs.  GPM Metals

DevEx Resources

Risk-Adjusted Performance

Weakest

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

GPM Metals

Risk-Adjusted Performance

Fair

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

Pair Trading with DevEx Resources and GPM Metals

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

The idea behind DevEx Resources Limited and GPM 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.