Correlation Between Draganfly and Optimi Health
Can any of the company-specific risk be diversified away by investing in both Draganfly and Optimi Health 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 Draganfly and Optimi Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Draganfly and Optimi Health Corp, you can compare the effects of market volatilities on Draganfly and Optimi Health 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 Draganfly with a short position of Optimi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Draganfly and Optimi Health.
Diversification Opportunities for Draganfly and Optimi Health
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Draganfly and Optimi is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Draganfly and Optimi Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optimi Health Corp and Draganfly 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 Draganfly are associated (or correlated) with Optimi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optimi Health Corp has no effect on the direction of Draganfly i.e., Draganfly and Optimi Health go up and down completely randomly.
Pair Corralation between Draganfly and Optimi Health
Given the investment horizon of 90 days Draganfly is expected to generate 1.47 times more return on investment than Optimi Health. However, Draganfly is 1.47 times more volatile than Optimi Health Corp. It trades about 0.0 of its potential returns per unit of risk. Optimi Health Corp is currently generating about -0.09 per unit of risk. If you would invest 675.00 in Draganfly on September 1, 2024 and sell it today you would lose (256.00) from holding Draganfly or give up 37.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Draganfly vs. Optimi Health Corp
Performance |
| Timeline |
| Draganfly |
| Optimi Health Corp |
Draganfly and Optimi Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Draganfly and Optimi Health
The main advantage of trading using opposite Draganfly and Optimi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Draganfly position performs unexpectedly, Optimi Health 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 Optimi Health will offset losses from the drop in Optimi Health's long position.| Draganfly vs. Lilium NV | Draganfly vs. Archer Aviation | Draganfly vs. Eve Holding | Draganfly vs. Ehang Holdings |
| Optimi Health vs. Cybin Inc | Optimi Health vs. TAAT Global Alternatives | Optimi Health vs. Spey Resources Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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