Correlation Between Cantor Equity and Indigo Acquisition

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

Diversification Opportunities for Cantor Equity and Indigo Acquisition

-0.45

Correlation Coefficient

Cantor Equity  Indigo Acquisition

Very good diversification

The 3 months correlation between Cantor and Indigo is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cantor Equity Partners and Indigo Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indigo Acquisition Corp 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 Indigo Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indigo Acquisition Corp has no effect on the direction of Cantor Equity i.e., Cantor Equity and Indigo Acquisition go up and down completely randomly.

Pair Corralation between Cantor Equity and Indigo Acquisition

Given the investment horizon of 90 days Cantor Equity is expected to generate 8.33 times less return on investment than Indigo Acquisition. In addition to that, Cantor Equity is 5.05 times more volatile than Indigo Acquisition Corp. It trades about 0.0 of its total potential returns per unit of risk. Indigo Acquisition Corp is currently generating about 0.07 per unit of volatility. If you would invest  1,004  in Indigo Acquisition Corp on October 6, 2025 and sell it today you would earn a total of  1.00  from holding Indigo Acquisition Corp or generate 0.1% return on investment over 90 days.

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

Cantor Equity Partners  vs.  Indigo Acquisition 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. In spite of very healthy basic indicators, Cantor Equity is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Indigo Acquisition Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Indigo Acquisition Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Indigo Acquisition is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Cantor Equity and Indigo Acquisition

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

The idea behind Cantor Equity Partners and Indigo Acquisition Corp 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.