Correlation Between Melar Acquisition and Cantor Equity

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

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

Diversification Opportunities for Melar Acquisition and Cantor Equity

-0.45

Correlation Coefficient

Melar Acquisition  Cantor Equity

Very good diversification

The 3 months correlation between Melar and Cantor is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Melar Acquisition Corp 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 Melar Acquisition 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 Melar Acquisition Corp 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 Melar Acquisition i.e., Melar Acquisition and Cantor Equity go up and down completely randomly.

Pair Corralation between Melar Acquisition and Cantor Equity

Given the investment horizon of 90 days Melar Acquisition Corp is expected to generate 0.07 times more return on investment than Cantor Equity. However, Melar Acquisition Corp is 13.65 times less risky than Cantor Equity. It trades about 0.02 of its potential returns per unit of risk. Cantor Equity Partners, is currently generating about -0.12 per unit of risk. If you would invest  1,052  in Melar Acquisition Corp on September 5, 2025 and sell it today you would earn a total of  6.00  from holding Melar Acquisition Corp or generate 0.57% return on investment over 90 days.

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

Melar Acquisition Corp  vs.  Cantor Equity Partners,

Melar Acquisition Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Melar Acquisition Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Melar Acquisition is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

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 weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in January 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Melar Acquisition and Cantor Equity

The main advantage of trading using opposite Melar Acquisition and Cantor Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Melar Acquisition 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 Melar Acquisition Corp 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.