Correlation Between Draganfly and Ehang Holdings

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Draganfly and Ehang Holdings 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 Ehang Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Draganfly and Ehang Holdings, you can compare the effects of market volatilities on Draganfly and Ehang Holdings 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 Ehang Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Draganfly and Ehang Holdings.

Diversification Opportunities for Draganfly and Ehang Holdings

-0.46
  Correlation Coefficient

Very good diversification

The 3 months correlation between Draganfly and Ehang is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Draganfly and Ehang Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ehang Holdings 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 Ehang Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ehang Holdings has no effect on the direction of Draganfly i.e., Draganfly and Ehang Holdings go up and down completely randomly.

Pair Corralation between Draganfly and Ehang Holdings

Given the investment horizon of 90 days Draganfly is expected to under-perform the Ehang Holdings. In addition to that, Draganfly is 1.0 times more volatile than Ehang Holdings. It trades about -0.02 of its total potential returns per unit of risk. Ehang Holdings is currently generating about 0.05 per unit of volatility. If you would invest  845.00  in Ehang Holdings on January 22, 2024 and sell it today you would earn a total of  904.00  from holding Ehang Holdings or generate 106.98% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Draganfly  vs.  Ehang Holdings

 Performance 
       Timeline  
Draganfly 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Draganfly has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.
Ehang Holdings 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Ehang Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, Ehang Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Draganfly and Ehang Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Draganfly and Ehang Holdings

The main advantage of trading using opposite Draganfly and Ehang Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Draganfly position performs unexpectedly, Ehang Holdings 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 Ehang Holdings will offset losses from the drop in Ehang Holdings' long position.
The idea behind Draganfly and Ehang Holdings 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Other Complementary Tools

Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Global Correlations
Find global opportunities by holding instruments from different markets
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges