Correlation Between Cryomass Technologies and Draganfly

Can any of the company-specific risk be diversified away by investing in both Cryomass Technologies 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 Cryomass Technologies and Draganfly into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cryomass Technologies and Draganfly, you can compare the effects of market volatilities on Cryomass Technologies 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 Cryomass Technologies with a short position of Draganfly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cryomass Technologies and Draganfly.

Diversification Opportunities for Cryomass Technologies and Draganfly

-0.54

Correlation Coefficient

Cryomass Technologies  Draganfly

Excellent diversification

The 3 months correlation between Cryomass and Draganfly is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cryomass Technologies and Draganfly in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Draganfly and Cryomass Technologies 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 Cryomass Technologies 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 Cryomass Technologies i.e., Cryomass Technologies and Draganfly go up and down completely randomly.

Pair Corralation between Cryomass Technologies and Draganfly

Given the investment horizon of 90 days Cryomass Technologies is expected to generate 1.43 times more return on investment than Draganfly. However, Cryomass Technologies is 1.43 times more volatile than Draganfly. It trades about 0.15 of its potential returns per unit of risk. Draganfly is currently generating about -0.04 per unit of risk. If you would invest  1.73  in Cryomass Technologies on December 28, 2024 and sell it today you would earn a total of  1.43  from holding Cryomass Technologies or generate 82.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Cryomass Technologies  vs.  Draganfly

Cryomass Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cryomass Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Cryomass Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Draganfly

Risk-Adjusted Performance

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 unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Cryomass Technologies and Draganfly

The main advantage of trading using opposite Cryomass Technologies and Draganfly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cryomass Technologies 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 Cryomass Technologies 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.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.