Correlation Between Cantor Equity and Univest Pennsylvania
Can any of the company-specific risk be diversified away by investing in both Cantor Equity and Univest Pennsylvania 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 Univest Pennsylvania 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 Univest Pennsylvania, you can compare the effects of market volatilities on Cantor Equity and Univest Pennsylvania 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 Univest Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantor Equity and Univest Pennsylvania.
Diversification Opportunities for Cantor Equity and Univest Pennsylvania
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cantor and Univest is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cantor Equity Partners, and Univest Pennsylvania in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Univest Pennsylvania 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 Univest Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Univest Pennsylvania has no effect on the direction of Cantor Equity i.e., Cantor Equity and Univest Pennsylvania go up and down completely randomly.
Pair Corralation between Cantor Equity and Univest Pennsylvania
Considering the 90-day investment horizon Cantor Equity Partners, is expected to generate 0.35 times more return on investment than Univest Pennsylvania. However, Cantor Equity Partners, is 2.85 times less risky than Univest Pennsylvania. It trades about 0.15 of its potential returns per unit of risk. Univest Pennsylvania is currently generating about -0.02 per unit of risk. If you would invest 1,013 in Cantor Equity Partners, on September 12, 2024 and sell it today you would earn a total of 12.00 from holding Cantor Equity Partners, or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantor Equity Partners, vs. Univest Pennsylvania
Performance |
| Timeline |
| Cantor Equity Partners, |
| Univest Pennsylvania |
Cantor Equity and Univest Pennsylvania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantor Equity and Univest Pennsylvania
The main advantage of trading using opposite Cantor Equity and Univest Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantor Equity position performs unexpectedly, Univest Pennsylvania 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 Univest Pennsylvania will offset losses from the drop in Univest Pennsylvania's long position.| Cantor Equity vs. Distoken Acquisition | Cantor Equity vs. Voyager Acquisition Corp | Cantor Equity vs. dMY Squared Technology | Cantor Equity vs. YHN Acquisition I |
| Univest Pennsylvania vs. JPMorgan Chase Co | Univest Pennsylvania vs. Citigroup | Univest Pennsylvania vs. Wells Fargo | Univest Pennsylvania vs. Toronto Dominion Bank |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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