Correlation Between Virgin Galactic and Astra Space
Can any of the company-specific risk be diversified away by investing in both Virgin Galactic 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 Virgin Galactic and Astra Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virgin Galactic Holdings and Astra Space, you can compare the effects of market volatilities on Virgin Galactic 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 Virgin Galactic with a short position of Astra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virgin Galactic and Astra Space.
Diversification Opportunities for Virgin Galactic and Astra Space
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Virgin and Astra is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Virgin Galactic Holdings and Astra Space in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Space and Virgin Galactic 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 Virgin Galactic Holdings 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 Virgin Galactic i.e., Virgin Galactic and Astra Space go up and down completely randomly.
Pair Corralation between Virgin Galactic and Astra Space
If you would invest 54.00 in Astra Space on August 24, 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 Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Virgin Galactic Holdings vs. Astra Space
Performance |
| Timeline |
| Virgin Galactic Holdings |
| Astra Space |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Virgin Galactic and Astra Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virgin Galactic and Astra Space
The main advantage of trading using opposite Virgin Galactic and Astra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virgin Galactic 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.| Virgin Galactic vs. Planet Labs PBC | Virgin Galactic vs. Eve Holding | Virgin Galactic vs. Redwire Corp | Virgin Galactic vs. Lockheed Martin |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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