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
Pair Corralation between Curtiss Wright and Draganfly
Allowing for the 90-day total investment horizon Curtiss Wright is expected to generate 0.06 times more return on investment than Draganfly. However, Curtiss Wright is 17.41 times less risky than Draganfly. It trades about 0.35 of its potential returns per unit of risk. Draganfly is currently generating about -0.15 per unit of risk. If you would invest 22,434 in Curtiss Wright on December 3, 2023 and sell it today you would earn a total of 1,379 from holding Curtiss Wright or generate 6.15% return on investment over 90 days.
|3 Months [change]
Curtiss-Wright vs. Draganfly
Curtiss Wright and Draganfly Volatility Contrast
Pair Trading with Curtiss Wright and DraganflyThe 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. The idea behind Curtiss Wright and Draganfly 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.
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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