Correlation Between Virgin Galactic and Alta Equipment
Can any of the company-specific risk be diversified away by investing in both Virgin Galactic and Alta Equipment 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 Alta Equipment 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 Alta Equipment Group, you can compare the effects of market volatilities on Virgin Galactic and Alta Equipment 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 Alta Equipment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virgin Galactic and Alta Equipment.
Diversification Opportunities for Virgin Galactic and Alta Equipment
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Virgin and Alta is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Virgin Galactic Holdings and Alta Equipment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta Equipment Group 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 Alta Equipment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta Equipment Group has no effect on the direction of Virgin Galactic i.e., Virgin Galactic and Alta Equipment go up and down completely randomly.
Pair Corralation between Virgin Galactic and Alta Equipment
Given the investment horizon of 90 days Virgin Galactic Holdings is expected to generate 1.14 times more return on investment than Alta Equipment. However, Virgin Galactic is 1.14 times more volatile than Alta Equipment Group. It trades about 0.1 of its potential returns per unit of risk. Alta Equipment Group is currently generating about -0.19 per unit of risk. If you would invest 299.00 in Virgin Galactic Holdings on August 15, 2025 and sell it today you would earn a total of 63.00 from holding Virgin Galactic Holdings or generate 21.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virgin Galactic Holdings vs. Alta Equipment Group
Performance |
| Timeline |
| Virgin Galactic Holdings |
| Alta Equipment Group |
Virgin Galactic and Alta Equipment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virgin Galactic and Alta Equipment
The main advantage of trading using opposite Virgin Galactic and Alta Equipment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virgin Galactic position performs unexpectedly, Alta Equipment 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 Alta Equipment will offset losses from the drop in Alta Equipment's long position.| Virgin Galactic vs. Ammo Inc | Virgin Galactic vs. Novonix Ltd ADR | Virgin Galactic vs. VisionWave Holdings, Common | Virgin Galactic vs. PAMT P |
| Alta Equipment vs. Ammo Inc | Alta Equipment vs. Novonix Ltd ADR | Alta Equipment vs. SEACOR Marine Holdings | Alta Equipment vs. SKYX Platforms 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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