Correlation Between Virgin Galactic and Astronics Corp

Can any of the company-specific risk be diversified away by investing in both Virgin Galactic and Astronics Corp 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 Astronics Corp 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 Astronics Corp Cl, you can compare the effects of market volatilities on Virgin Galactic and Astronics Corp 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 Astronics Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virgin Galactic and Astronics Corp.

Diversification Opportunities for Virgin Galactic and Astronics Corp

0.22

Correlation Coefficient

Virgin Galactic  Astronics Corp

Modest diversification

The 3 months correlation between Virgin and Astronics is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Virgin Galactic Holdings and Astronics Corp Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics Corp Cl 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 Astronics Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astronics Corp Cl has no effect on the direction of Virgin Galactic i.e., Virgin Galactic and Astronics Corp go up and down completely randomly.

Pair Corralation between Virgin Galactic and Astronics Corp

Given the investment horizon of 90 days Virgin Galactic is expected to generate 1.1 times less return on investment than Astronics Corp. But when comparing it to its historical volatility, Virgin Galactic Holdings is 1.26 times less risky than Astronics Corp. It trades about 0.13 of its potential returns per unit of risk. Astronics Corp Cl is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  3,270  in Astronics Corp Cl on July 4, 2025 and sell it today you would earn a total of  1,280  from holding Astronics Corp Cl or generate 39.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Virgin Galactic Holdings  vs.  Astronics Corp Cl

Virgin Galactic Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Virgin Galactic Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Virgin Galactic exhibited solid returns over the last few months and may actually be approaching a breakup point.

Astronics Corp Cl

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Astronics Corp Cl are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Astronics Corp sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Virgin Galactic and Astronics Corp

The main advantage of trading using opposite Virgin Galactic and Astronics Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virgin Galactic position performs unexpectedly, Astronics Corp 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 Astronics Corp will offset losses from the drop in Astronics Corp's long position.

The idea behind Virgin Galactic Holdings and Astronics Corp Cl pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.