Correlation Between Sensient Technologies and Cantor Equity

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

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

Diversification Opportunities for Sensient Technologies and Cantor Equity

-0.66

Correlation Coefficient

Sensient Technologies  Cantor Equity

Excellent diversification

The 3 months correlation between Sensient and Cantor is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sensient Technologies 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 Sensient Technologies 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 Sensient Technologies 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 Sensient Technologies i.e., Sensient Technologies and Cantor Equity go up and down completely randomly.

Pair Corralation between Sensient Technologies and Cantor Equity

Considering the 90-day investment horizon Sensient Technologies is expected to generate 0.18 times more return on investment than Cantor Equity. However, Sensient Technologies is 5.57 times less risky than Cantor Equity. It trades about 0.28 of its potential returns per unit of risk. Cantor Equity Partners, is currently generating about -0.03 per unit of risk. If you would invest  9,410  in Sensient Technologies on May 19, 2025 and sell it today you would earn a total of  2,415  from holding Sensient Technologies or generate 25.66% return on investment over 90 days.

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

Sensient Technologies  vs.  Cantor Equity Partners,

Sensient Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sensient Technologies are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Sensient Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Sensient Technologies and Cantor Equity

The main advantage of trading using opposite Sensient Technologies and Cantor Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensient Technologies 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 Sensient Technologies 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.