Correlation Between Cantor Equity and Cartesian Growth

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

Diversification Opportunities for Cantor Equity and Cartesian Growth

-0.57

Correlation Coefficient

Cantor Equity  Cartesian Growth

Excellent diversification

The 3 months correlation between Cantor and Cartesian is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cantor Equity Partners, and Cartesian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartesian Growth 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 Cartesian Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartesian Growth has no effect on the direction of Cantor Equity i.e., Cantor Equity and Cartesian Growth go up and down completely randomly.

Pair Corralation between Cantor Equity and Cartesian Growth

Considering the 90-day investment horizon Cantor Equity Partners, is expected to generate 15.03 times more return on investment than Cartesian Growth. However, Cantor Equity is 15.03 times more volatile than Cartesian Growth. It trades about 0.03 of its potential returns per unit of risk. Cartesian Growth is currently generating about 0.05 per unit of risk. If you would invest  2,806  in Cantor Equity Partners, on May 12, 2025 and sell it today you would lose (123.00) from holding Cantor Equity Partners, or give up 4.38% of portfolio value over 90 days.

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

Cantor Equity Partners,  vs.  Cartesian Growth

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 inconsistent technical and fundamental indicators, Cantor Equity may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Cartesian Growth

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Cartesian Growth are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Cartesian Growth is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cantor Equity and Cartesian Growth

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

The idea behind Cantor Equity Partners, and Cartesian Growth 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.