Correlation Between Cantor Equity and Pool

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

Diversification Opportunities for Cantor Equity and Pool

-0.23

Correlation Coefficient

Cantor Equity  Pool

Very good diversification

The 3 months correlation between Cantor and Pool is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cantor Equity Partners, and Pool Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pool 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 Pool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pool has no effect on the direction of Cantor Equity i.e., Cantor Equity and Pool go up and down completely randomly.

Pair Corralation between Cantor Equity and Pool

Considering the 90-day investment horizon Cantor Equity Partners, is expected to under-perform the Pool. In addition to that, Cantor Equity is 4.01 times more volatile than Pool Corporation. It trades about -0.03 of its total potential returns per unit of risk. Pool Corporation is currently generating about 0.01 per unit of volatility. If you would invest  32,123  in Pool Corporation on May 19, 2025 and sell it today you would earn a total of  52.00  from holding Pool Corporation or generate 0.16% return on investment over 90 days.

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

Cantor Equity Partners,  vs.  Pool Corp.

Cantor Equity Partners,

Risk-Adjusted Performance

Weakest

Over the last 90 days Cantor Equity Partners, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pool

Risk-Adjusted Performance

Weakest

Over the last 90 days Pool Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Pool is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Cantor Equity and Pool

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

The idea behind Cantor Equity Partners, and Pool Corporation 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.