Correlation Between Cantor Equity and A SPAC

Can any of the company-specific risk be diversified away by investing in both Cantor Equity and A SPAC 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 Cantor Equity and A SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cantor Equity Partners, and A SPAC III, you can compare the effects of market volatilities on Cantor Equity and A SPAC 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 Cantor Equity with a short position of A SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantor Equity and A SPAC.

Diversification Opportunities for Cantor Equity and A SPAC

-0.38

Correlation Coefficient

Cantor Equity  A SPAC

Very good diversification

The 3 months correlation between Cantor and ASPC is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cantor Equity Partners, and A SPAC III in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC III and Cantor Equity 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 Cantor Equity Partners, are associated (or correlated) with A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC III has no effect on the direction of Cantor Equity i.e., Cantor Equity and A SPAC go up and down completely randomly.

Pair Corralation between Cantor Equity and A SPAC

Considering the 90-day investment horizon Cantor Equity Partners, is expected to generate 60.09 times more return on investment than A SPAC. However, Cantor Equity is 60.09 times more volatile than A SPAC III. It trades about 0.03 of its potential returns per unit of risk. A SPAC III is currently generating about 0.15 per unit of risk. If you would invest  3,106  in Cantor Equity Partners, on April 28, 2025 and sell it today you would lose (287.00) from holding Cantor Equity Partners, or give up 9.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cantor Equity Partners,  vs.  A SPAC III

Cantor Equity Partners,

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cantor Equity Partners, are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, Cantor Equity reported solid returns over the last few months and may actually be approaching a breakup point.

A SPAC III

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in A SPAC III are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, A SPAC is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Cantor Equity and A SPAC

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

The idea behind Cantor Equity Partners, and A SPAC III 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.