Correlation Between Astra Space and Redwire Corp
Can any of the company-specific risk be diversified away by investing in both Astra Space and Redwire Corp 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 Astra Space and Redwire Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra Space and Redwire Corp, you can compare the effects of market volatilities on Astra Space and Redwire Corp 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 Astra Space with a short position of Redwire Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Space and Redwire Corp.
Diversification Opportunities for Astra Space and Redwire Corp
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astra and Redwire is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Astra Space and Redwire Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Redwire Corp and Astra Space 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 Astra Space are associated (or correlated) with Redwire Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Redwire Corp has no effect on the direction of Astra Space i.e., Astra Space and Redwire Corp go up and down completely randomly.
Pair Corralation between Astra Space and Redwire Corp
If you would invest 919.00 in Redwire Corp on August 28, 2024 and sell it today you would earn a total of 458.00 from holding Redwire Corp or generate 49.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Astra Space vs. Redwire Corp
Performance |
| Timeline |
| Astra Space |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Redwire Corp |
Astra Space and Redwire Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Space and Redwire Corp
The main advantage of trading using opposite Astra Space and Redwire Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Space position performs unexpectedly, Redwire Corp 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 Redwire Corp will offset losses from the drop in Redwire Corp's long position.| Astra Space vs. Virgin Galactic Holdings | Astra Space vs. Planet Labs PBC | Astra Space vs. Eve Holding | Astra Space vs. Redwire Corp |
| Redwire Corp vs. Sidus Space | Redwire Corp vs. Planet Labs PBC | Redwire Corp vs. Intuitive Machines | Redwire Corp vs. Rocket Lab USA |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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