Correlation Between Redwire Corp and Virgin Orbit
Can any of the company-specific risk be diversified away by investing in both Redwire Corp 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 Redwire Corp and Virgin Orbit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Redwire Corp and Virgin Orbit Holdings, you can compare the effects of market volatilities on Redwire Corp 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 Redwire Corp with a short position of Virgin Orbit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Redwire Corp and Virgin Orbit.
Diversification Opportunities for Redwire Corp and Virgin Orbit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Redwire and Virgin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Redwire Corp 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 Redwire Corp 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 Redwire Corp 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 Redwire Corp i.e., Redwire Corp and Virgin Orbit go up and down completely randomly.
Pair Corralation between Redwire Corp and Virgin Orbit
If you would invest 519.00 in Redwire Corp on August 27, 2024 and sell it today you would earn a total of 858.00 from holding Redwire Corp or generate 165.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Redwire Corp vs. Virgin Orbit Holdings
Performance |
| Timeline |
| Redwire Corp |
| Virgin Orbit Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Redwire Corp and Virgin Orbit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Redwire Corp and Virgin Orbit
The main advantage of trading using opposite Redwire Corp and Virgin Orbit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Redwire Corp 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.| Redwire Corp vs. Sidus Space | Redwire Corp vs. Planet Labs PBC | Redwire Corp vs. Intuitive Machines | Redwire Corp vs. Rocket Lab USA |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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