Correlation Between Intuitive Machines and Virgin Galactic
Can any of the company-specific risk be diversified away by investing in both Intuitive Machines and Virgin Galactic 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 Intuitive Machines and Virgin Galactic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Machines and Virgin Galactic Holdings, you can compare the effects of market volatilities on Intuitive Machines and Virgin Galactic 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 Intuitive Machines with a short position of Virgin Galactic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Machines and Virgin Galactic.
Diversification Opportunities for Intuitive Machines and Virgin Galactic
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intuitive and Virgin is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Virgin Galactic Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virgin Galactic Holdings and Intuitive Machines 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 Intuitive Machines are associated (or correlated) with Virgin Galactic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virgin Galactic Holdings has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Virgin Galactic go up and down completely randomly.
Pair Corralation between Intuitive Machines and Virgin Galactic
Given the investment horizon of 90 days Intuitive Machines is expected to generate 2.54 times more return on investment than Virgin Galactic. However, Intuitive Machines is 2.54 times more volatile than Virgin Galactic Holdings. It trades about 0.06 of its potential returns per unit of risk. Virgin Galactic Holdings is currently generating about -0.07 per unit of risk. If you would invest 927.00 in Intuitive Machines on November 1, 2024 and sell it today you would earn a total of 1,318 from holding Intuitive Machines or generate 142.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Machines vs. Virgin Galactic Holdings
Performance |
| Timeline |
| Intuitive Machines |
| Virgin Galactic Holdings |
Intuitive Machines and Virgin Galactic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Machines and Virgin Galactic
The main advantage of trading using opposite Intuitive Machines and Virgin Galactic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Machines position performs unexpectedly, Virgin Galactic 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 Galactic will offset losses from the drop in Virgin Galactic's long position.| Intuitive Machines vs. Redwire Corp | Intuitive Machines vs. Sidus Space | Intuitive Machines vs. Rocket Lab USA | Intuitive Machines vs. Momentus |
| Virgin Galactic vs. Planet Labs PBC | Virgin Galactic vs. Eve Holding | Virgin Galactic vs. Redwire Corp | Virgin Galactic vs. Lockheed Martin |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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