Correlation Between Draganfly and Sky Harbour
Can any of the company-specific risk be diversified away by investing in both Draganfly and Sky Harbour 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 Sky Harbour into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Draganfly and Sky Harbour Group, you can compare the effects of market volatilities on Draganfly and Sky Harbour 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 Sky Harbour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Draganfly and Sky Harbour.
Diversification Opportunities for Draganfly and Sky Harbour
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Draganfly and Sky is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Draganfly and Sky Harbour Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky Harbour Group 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 Sky Harbour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky Harbour Group has no effect on the direction of Draganfly i.e., Draganfly and Sky Harbour go up and down completely randomly.
Pair Corralation between Draganfly and Sky Harbour
Given the investment horizon of 90 days Draganfly is expected to generate 2.22 times more return on investment than Sky Harbour. However, Draganfly is 2.22 times more volatile than Sky Harbour Group. It trades about 0.04 of its potential returns per unit of risk. Sky Harbour Group is currently generating about 0.01 per unit of risk. If you would invest 430.00 in Draganfly on September 1, 2024 and sell it today you would lose (11.00) from holding Draganfly or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Draganfly vs. Sky Harbour Group
Performance |
| Timeline |
| Draganfly |
| Sky Harbour Group |
Draganfly and Sky Harbour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Draganfly and Sky Harbour
The main advantage of trading using opposite Draganfly and Sky Harbour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Draganfly position performs unexpectedly, Sky Harbour 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 Sky Harbour will offset losses from the drop in Sky Harbour's long position.| Draganfly vs. Lilium NV | Draganfly vs. Archer Aviation | Draganfly vs. Eve Holding | Draganfly vs. Ehang Holdings |
| Sky Harbour vs. Ducommun Incorporated | Sky Harbour vs. Innovative Solutions and | Sky Harbour vs. National Presto Industries | Sky Harbour vs. Astronics |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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