When using draggable functionality there should not be distance between the cursor and the dragged item. The cursor should be dragging up inside the element's area where the user has clicked specifically.
For any reference on this see example on YUI library: http://yuilibrary.com/yui/docs/dd/groups-drag.html
1. Studio_dragging_current.png -> Screenshot of how is the current interaction;
2. Studio_dragging_start.png -> Representation of how the new interaction proposed should start up;
3. Studio_dragging_new_2.png -> Representation of how the new interaction proposed should perform once the element is dragged up.