Correlation Between Golden Developing and Smart Cannabis

Can any of the company-specific risk be diversified away by investing in both Golden Developing and Smart Cannabis 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 Golden Developing and Smart Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Golden Developing Solutions and Smart Cannabis Corp, you can compare the effects of market volatilities on Golden Developing and Smart Cannabis 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 Golden Developing with a short position of Smart Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Developing and Smart Cannabis.

Diversification Opportunities for Golden Developing and Smart Cannabis

0.0

Correlation Coefficient

Golden Developing  Smart Cannabis

Pay attention - limited upside

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

Pair Corralation between Golden Developing and Smart Cannabis

If you would invest  0.03  in Smart Cannabis Corp on July 25, 2025 and sell it today you would lose (0.01) from holding Smart Cannabis Corp or give up 33.33% of portfolio value over 90 days.

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

Golden Developing Solutions  vs.  Smart Cannabis Corp

Golden Developing

Risk-Adjusted Performance

Weakest

Over the last 90 days Golden Developing Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, Golden Developing is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Smart Cannabis Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Smart Cannabis Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Smart Cannabis sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Golden Developing and Smart Cannabis

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

The idea behind Golden Developing Solutions and Smart Cannabis 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.