Correlation Between Futu Holdings and Cantor Equity

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

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

Diversification Opportunities for Futu Holdings and Cantor Equity

-0.03

Correlation Coefficient

Futu Holdings  Cantor Equity

Good diversification

The 3 months correlation between Futu and Cantor is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Futu Holdings and Cantor Equity Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantor Equity Partners and Futu Holdings 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 Futu Holdings are associated (or correlated) with Cantor Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantor Equity Partners has no effect on the direction of Futu Holdings i.e., Futu Holdings and Cantor Equity go up and down completely randomly.

Pair Corralation between Futu Holdings and Cantor Equity

Given the investment horizon of 90 days Futu Holdings is expected to under-perform the Cantor Equity. In addition to that, Futu Holdings is 3.69 times more volatile than Cantor Equity Partners. It trades about -0.09 of its total potential returns per unit of risk. Cantor Equity Partners is currently generating about -0.21 per unit of volatility. If you would invest  1,141  in Cantor Equity Partners on September 7, 2025 and sell it today you would lose (43.00) from holding Cantor Equity Partners or give up 3.77% of portfolio value over 90 days.

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

Futu Holdings  vs.  Cantor Equity Partners

Futu Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Futu Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Futu Holdings is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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 recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Futu Holdings and Cantor Equity

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

The idea behind Futu Holdings and Cantor Equity Partners 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.