Correlation Between Vine Hill and Cantor Equity

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

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

Diversification Opportunities for Vine Hill and Cantor Equity

-0.55

Correlation Coefficient

Vine Hill  Cantor Equity

Excellent diversification

The 3 months correlation between Vine and Cantor is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Vine Hill Capital 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 Vine Hill 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 Vine Hill Capital 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 Vine Hill i.e., Vine Hill and Cantor Equity go up and down completely randomly.

Pair Corralation between Vine Hill and Cantor Equity

Given the investment horizon of 90 days Vine Hill is expected to generate 11.79 times less return on investment than Cantor Equity. But when comparing it to its historical volatility, Vine Hill Capital is 69.25 times less risky than Cantor Equity. It trades about 0.1 of its potential returns per unit of risk. Cantor Equity Partners, is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,930  in Cantor Equity Partners, on May 6, 2025 and sell it today you would lose (280.00) from holding Cantor Equity Partners, or give up 9.56% of portfolio value over 90 days.

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

Vine Hill Capital  vs.  Cantor Equity Partners,

Vine Hill Capital

Risk-Adjusted Performance

OK

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

Cantor Equity Partners,

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cantor Equity Partners, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Cantor Equity may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Vine Hill and Cantor Equity

The main advantage of trading using opposite Vine Hill and Cantor Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vine Hill 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 Vine Hill Capital 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.