Correlation Between Cantor Equity and Republic Digital

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

Diversification Opportunities for Cantor Equity and Republic Digital

0.39

Correlation Coefficient

Cantor Equity  Republic Digital

Weak diversification

The 3 months correlation between Cantor and Republic is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cantor Equity Partners and Republic Digital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Republic Digital Acq 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 Republic Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Republic Digital Acq has no effect on the direction of Cantor Equity i.e., Cantor Equity and Republic Digital go up and down completely randomly.

Pair Corralation between Cantor Equity and Republic Digital

Given the investment horizon of 90 days Cantor Equity Partners is expected to under-perform the Republic Digital. In addition to that, Cantor Equity is 2.66 times more volatile than Republic Digital Acquisition. It trades about -0.12 of its total potential returns per unit of risk. Republic Digital Acquisition is currently generating about -0.13 per unit of volatility. If you would invest  1,028  in Republic Digital Acquisition on September 14, 2025 and sell it today you would lose (8.00) from holding Republic Digital Acquisition or give up 0.78% of portfolio value over 90 days.

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

Cantor Equity Partners  vs.  Republic Digital Acquisition

Cantor Equity Partners

Risk-Adjusted Performance

Soft

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

Republic Digital Acq

Risk-Adjusted Performance

Weakest

Over the last 90 days Republic Digital Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Republic Digital is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cantor Equity and Republic Digital

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

The idea behind Cantor Equity Partners and Republic Digital Acquisition 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.