Correlation Between Astra Space and Virgin Orbit
Can any of the company-specific risk be diversified away by investing in both Astra Space and Virgin Orbit 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 Virgin Orbit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra Space and Virgin Orbit Holdings, you can compare the effects of market volatilities on Astra Space and Virgin Orbit 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 Virgin Orbit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Space and Virgin Orbit.
Diversification Opportunities for Astra Space and Virgin Orbit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astra and Virgin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astra Space and Virgin Orbit Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virgin Orbit Holdings 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 Virgin Orbit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virgin Orbit Holdings has no effect on the direction of Astra Space i.e., Astra Space and Virgin Orbit go up and down completely randomly.
Pair Corralation between Astra Space and Virgin Orbit
If you would invest (100.00) in Virgin Orbit Holdings on August 27, 2024 and sell it today you would earn a total of 100.00 from holding Virgin Orbit Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Astra Space vs. Virgin Orbit Holdings
Performance |
| Timeline |
| Astra Space |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Virgin Orbit Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astra Space and Virgin Orbit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Space and Virgin Orbit
The main advantage of trading using opposite Astra Space and Virgin Orbit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Space position performs unexpectedly, Virgin Orbit 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 Virgin Orbit will offset losses from the drop in Virgin Orbit'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 |
| Virgin Orbit vs. Albemarle | Virgin Orbit vs. Ecovyst | Virgin Orbit vs. VirnetX Holding Corp | Virgin Orbit vs. Avient Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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