diversifiable risk of combining Ehang Holdings and Draganfly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ehang Holdings and Draganfly, you can compare the effects of market volatilities on Ehang Holdings 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 Ehang Holdings with a short position of Draganfly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ehang Holdings and Draganfly.
Diversification Opportunities for Ehang Holdings and Draganfly
Pair Corralation between Ehang Holdings and Draganfly
Allowing for the 90-day total investment horizon Ehang Holdings is expected to generate 0.33 times more return on investment than Draganfly. However, Ehang Holdings is 3.04 times less risky than Draganfly. It trades about 0.13 of its potential returns per unit of risk. Draganfly is currently generating about -0.15 per unit of risk. If you would invest 1,011 in Ehang Holdings on December 3, 2023 and sell it today you would earn a total of 112.00 from holding Ehang Holdings or generate 11.08% return on investment over 90 days.
Ehang Holdings vs. Draganfly
Ehang Holdings and Draganfly Volatility Contrast
Pair Trading with Ehang Holdings and DraganflyThe main advantage of trading using opposite Ehang Holdings and Draganfly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ehang Holdings 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 Ehang Holdings 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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