Correlation Between Cantor Equity and KLDiscovery
Can any of the company-specific risk be diversified away by investing in both Cantor Equity and KLDiscovery 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 Cantor Equity and KLDiscovery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantor Equity Partners, and KLDiscovery, you can compare the effects of market volatilities on Cantor Equity and KLDiscovery 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 Cantor Equity with a short position of KLDiscovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantor Equity and KLDiscovery.
Diversification Opportunities for Cantor Equity and KLDiscovery
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cantor and KLDiscovery is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cantor Equity Partners, and KLDiscovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLDiscovery and Cantor Equity 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 Cantor Equity Partners, are associated (or correlated) with KLDiscovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLDiscovery has no effect on the direction of Cantor Equity i.e., Cantor Equity and KLDiscovery go up and down completely randomly.
Pair Corralation between Cantor Equity and KLDiscovery
If you would invest 1,017 in Cantor Equity Partners, on September 14, 2024 and sell it today you would earn a total of 33.00 from holding Cantor Equity Partners, or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Cantor Equity Partners, vs. KLDiscovery
Performance |
| Timeline |
| Cantor Equity Partners, |
| KLDiscovery |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cantor Equity and KLDiscovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantor Equity and KLDiscovery
The main advantage of trading using opposite Cantor Equity and KLDiscovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantor Equity position performs unexpectedly, KLDiscovery 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 KLDiscovery will offset losses from the drop in KLDiscovery's long position.| Cantor Equity vs. Voyager Acquisition Corp | Cantor Equity vs. YHN Acquisition I | Cantor Equity vs. CO2 Energy Transition | Cantor Equity vs. Vine Hill Capital |
| KLDiscovery vs. 01 Communique Laboratory | KLDiscovery vs. LifeSpeak | KLDiscovery vs. RESAAS Services | KLDiscovery vs. RenoWorks Software |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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