Correlation Between Curtiss Wright and Draganfly
Can any of the company-specific risk be diversified away by investing in both Curtiss Wright 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 Curtiss Wright and Draganfly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Curtiss Wright and Draganfly, you can compare the effects of market volatilities on Curtiss Wright 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 Curtiss Wright with a short position of Draganfly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtiss Wright and Draganfly.
Diversification Opportunities for Curtiss Wright and Draganfly
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Curtiss and Draganfly is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Wright and Draganfly in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Draganfly and Curtiss Wright 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 Curtiss Wright 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 Curtiss Wright i.e., Curtiss Wright and Draganfly go up and down completely randomly.
Pair Corralation between Curtiss Wright and Draganfly
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 9.83 times less return on investment than Draganfly. But when comparing it to its historical volatility, Curtiss Wright is 4.72 times less risky than Draganfly. It trades about 0.07 of its potential returns per unit of risk. Draganfly is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 229.00 in Draganfly on September 24, 2024 and sell it today you would earn a total of 210.00 from holding Draganfly or generate 91.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Curtiss Wright vs. Draganfly
Performance |
Timeline |
Curtiss Wright |
Draganfly |
Curtiss Wright and Draganfly Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Curtiss Wright and Draganfly
The main advantage of trading using opposite Curtiss Wright and Draganfly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Curtiss Wright 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.Curtiss Wright vs. Ehang Holdings | Curtiss Wright vs. GE Aerospace | Curtiss Wright vs. Planet Labs PBC | Curtiss Wright vs. Draganfly |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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