Correlation Between FIAC Old and Cantor Equity

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

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

Diversification Opportunities for FIAC Old and Cantor Equity

0.0

Correlation Coefficient

FIAC Old  Cantor Equity

Pay attention - limited upside

The 3 months correlation between FIAC and Cantor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FIAC Old 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 FIAC Old 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 FIAC Old 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 FIAC Old i.e., FIAC Old and Cantor Equity go up and down completely randomly.

Pair Corralation between FIAC Old and Cantor Equity

If you would invest  1,039  in Cantor Equity Partners, on December 28, 2024 and sell it today you would earn a total of  29.00  from holding Cantor Equity Partners, or generate 2.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

FIAC Old  vs.  Cantor Equity Partners,

FIAC Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days FIAC Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, FIAC Old is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Cantor Equity Partners,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cantor Equity Partners, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Cantor Equity is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with FIAC Old and Cantor Equity

The main advantage of trading using opposite FIAC Old and Cantor Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIAC Old 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 FIAC Old 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.

Check out your portfolio center.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.