Correlation Between Virgin Orbit and Astra Space
Can any of the company-specific risk be diversified away by investing in both Virgin Orbit 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 Orbit 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 Orbit Holdings and Astra Space, you can compare the effects of market volatilities on Virgin Orbit 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 Orbit with a short position of Astra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virgin Orbit and Astra Space.
Diversification Opportunities for Virgin Orbit and Astra Space
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Virgin and Astra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Virgin Orbit 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 Orbit 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 Orbit 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 Orbit i.e., Virgin Orbit and Astra Space go up and down completely randomly.
Pair Corralation between Virgin Orbit and Astra Space
If you would invest 54.00 in Astra Space on August 27, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Virgin Orbit Holdings vs. Astra Space
Performance |
| Timeline |
| Virgin Orbit Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Astra Space |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Virgin Orbit and Astra Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virgin Orbit and Astra Space
The main advantage of trading using opposite Virgin Orbit and Astra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virgin Orbit 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 Orbit vs. Albemarle | Virgin Orbit vs. Ecovyst | Virgin Orbit vs. VirnetX Holding Corp | Virgin Orbit vs. Avient Corp |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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