Correlation Between Optimi Health and Draganfly
Can any of the company-specific risk be diversified away by investing in both Optimi Health and Draganfly 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 Optimi Health and Draganfly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optimi Health Corp and Draganfly, you can compare the effects of market volatilities on Optimi Health and Draganfly 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 Optimi Health with a short position of Draganfly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optimi Health and Draganfly.
Diversification Opportunities for Optimi Health and Draganfly
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Optimi and Draganfly is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Optimi Health Corp and Draganfly in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Draganfly and Optimi Health 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 Optimi Health Corp are associated (or correlated) with Draganfly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Draganfly has no effect on the direction of Optimi Health i.e., Optimi Health and Draganfly go up and down completely randomly.
Pair Corralation between Optimi Health and Draganfly
Assuming the 90 days horizon Optimi Health Corp is expected to under-perform the Draganfly. But the otc stock apears to be less risky and, when comparing its historical volatility, Optimi Health Corp is 1.47 times less risky than Draganfly. The otc stock trades about -0.09 of its potential returns per unit of risk. The Draganfly is currently generating about 0.0 of returns per unit of risk over similar time horizon. 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 |
Optimi Health Corp vs. Draganfly
Performance |
| Timeline |
| Optimi Health Corp |
| Draganfly |
Optimi Health and Draganfly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optimi Health and Draganfly
The main advantage of trading using opposite Optimi Health and Draganfly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optimi Health position performs unexpectedly, Draganfly 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 Draganfly will offset losses from the drop in Draganfly's long position.| Optimi Health vs. Cybin Inc | Optimi Health vs. TAAT Global Alternatives | Optimi Health vs. Spey Resources Corp |
| Draganfly vs. Lilium NV | Draganfly vs. Archer Aviation | Draganfly vs. Eve Holding | Draganfly vs. Ehang Holdings |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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