Correlation Between IONQ and Virgin Galactic
Can any of the company-specific risk be diversified away by investing in both IONQ 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 IONQ and Virgin Galactic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IONQ Inc and Virgin Galactic Holdings, you can compare the effects of market volatilities on IONQ 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 IONQ with a short position of Virgin Galactic. Check out your portfolio center. Please also check ongoing floating volatility patterns of IONQ and Virgin Galactic.
Diversification Opportunities for IONQ and Virgin Galactic
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IONQ and Virgin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding IONQ Inc 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 IONQ 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 IONQ Inc 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 IONQ i.e., IONQ and Virgin Galactic go up and down completely randomly.
Pair Corralation between IONQ and Virgin Galactic
Given the investment horizon of 90 days IONQ Inc is expected to generate 1.42 times more return on investment than Virgin Galactic. However, IONQ is 1.42 times more volatile than Virgin Galactic Holdings. It trades about 0.07 of its potential returns per unit of risk. Virgin Galactic Holdings is currently generating about 0.09 per unit of risk. If you would invest 4,023 in IONQ Inc on August 17, 2025 and sell it today you would earn a total of 695.00 from holding IONQ Inc or generate 17.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IONQ Inc vs. Virgin Galactic Holdings
Performance |
| Timeline |
| IONQ Inc |
| Virgin Galactic Holdings |
IONQ and Virgin Galactic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IONQ and Virgin Galactic
The main advantage of trading using opposite IONQ and Virgin Galactic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IONQ 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.| IONQ vs. Logitech International SA | IONQ vs. D Wave Quantum | IONQ vs. Rigetti Computing | IONQ vs. Unity Software |
| Virgin Galactic vs. Ammo Inc | Virgin Galactic vs. Novonix Ltd ADR | Virgin Galactic vs. VisionWave Holdings, Common | Virgin Galactic vs. PAMT P |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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