Correlation Between Terran Orbital and Astra Space
Can any of the company-specific risk be diversified away by investing in both Terran Orbital and Astra Space 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 Terran Orbital and Astra Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Terran Orbital Corp and Astra Space, you can compare the effects of market volatilities on Terran Orbital and Astra Space 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 Terran Orbital with a short position of Astra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terran Orbital and Astra Space.
Diversification Opportunities for Terran Orbital and Astra Space
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Terran and Astra is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Terran Orbital Corp and Astra Space in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Space and Terran Orbital 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 Terran Orbital Corp are associated (or correlated) with Astra Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Space has no effect on the direction of Terran Orbital i.e., Terran Orbital and Astra Space go up and down completely randomly.
Pair Corralation between Terran Orbital and Astra Space
If you would invest 54.00 in Astra Space on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Astra Space or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
Terran Orbital Corp vs. Astra Space
Performance |
| Timeline |
| Terran Orbital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Astra Space |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Terran Orbital and Astra Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terran Orbital and Astra Space
The main advantage of trading using opposite Terran Orbital and Astra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terran Orbital position performs unexpectedly, Astra Space 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 Astra Space will offset losses from the drop in Astra Space's long position.| Terran Orbital vs. Intuitive Machines | Terran Orbital vs. Sidus Space | Terran Orbital vs. Redwire Corp | Terran Orbital vs. Rocket Lab USA |
| Astra Space vs. Virgin Galactic Holdings | Astra Space vs. Planet Labs PBC | Astra Space vs. Eve Holding | Astra Space vs. Redwire 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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