TLDR:
- SpaceFund presented new research at the AIAA ASCEND conference in Las Vegas.
- The study shows that the space industry is weakly correlated to other investment opportunities, making space assets a viable consideration for diversification.
At the AIAA ASCEND conference in Las Vegas, SpaceFund co-founder Meagan Crawford presented new research that suggests the space industry is uncorrelated to eight tested market indices and alternative investment asset classes. This lack of correlation, combined with the industry’s consistent growth, could provide valuable diversification and hedging opportunities for investors. The research aimed to shed light on the potential of space assets as part of investment portfolios, especially for institutional investors.
The study compared the space industry to major market indices and alternative investment asset classes to measure correlation. The research revealed that space is weakly correlated to every investment sector tested, making space assets a viable consideration for institutional investors looking for opportunities to hedge against unforeseen risks. Additionally, during the period analyzed (2005-2022), the space industry was the only sector that did not experience a single year of negative growth, making it an attractive option for diversifying into high-growth opportunities.
Former Trustee and Chair of the Investment Committee at SFERS, E. David Ellington, praised the research study for providing valuable academic support for new investment theses. Such data is essential for institutional investors to make informed decisions about including space assets in their portfolios.
SpaceFund is a space venture capital firm that has raised two funds and made 21 investments across the space industry. The firm’s research and data on the space economy can be found at their website. Overall, the research suggests that the space industry offers unique diversification and growth opportunities for capital allocators.
