Correlation Between Cantor Equity and Voyager Acquisition

Can any of the company-specific risk be diversified away by investing in both Cantor Equity and Voyager Acquisition 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 Voyager Acquisition 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 Voyager Acquisition Corp, you can compare the effects of market volatilities on Cantor Equity and Voyager Acquisition 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 Voyager Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantor Equity and Voyager Acquisition.

Diversification Opportunities for Cantor Equity and Voyager Acquisition

0.21

Correlation Coefficient

Cantor Equity  Voyager Acquisition

Modest diversification

The 3 months correlation between Cantor and Voyager is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cantor Equity Partners, and Voyager Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voyager Acquisition Corp 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 Voyager Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voyager Acquisition Corp has no effect on the direction of Cantor Equity i.e., Cantor Equity and Voyager Acquisition go up and down completely randomly.

Pair Corralation between Cantor Equity and Voyager Acquisition

Considering the 90-day investment horizon Cantor Equity Partners, is expected to generate 1.22 times more return on investment than Voyager Acquisition. However, Cantor Equity is 1.22 times more volatile than Voyager Acquisition Corp. It trades about 0.16 of its potential returns per unit of risk. Voyager Acquisition Corp is currently generating about 0.07 per unit of risk. If you would invest  1,002  in Cantor Equity Partners, on September 3, 2024 and sell it today you would earn a total of  19.00  from holding Cantor Equity Partners, or generate 1.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	70.31%
Values	Daily Returns

Cantor Equity Partners,  vs.  Voyager Acquisition Corp

Cantor Equity Partners,

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cantor Equity Partners, are ranked lower than 12 (%) 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.

Voyager Acquisition Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Voyager Acquisition Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Voyager Acquisition is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Cantor Equity and Voyager Acquisition

The main advantage of trading using opposite Cantor Equity and Voyager Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantor Equity position performs unexpectedly, Voyager Acquisition 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 Voyager Acquisition will offset losses from the drop in Voyager Acquisition's long position.

The idea behind Cantor Equity Partners, and Voyager Acquisition Corp 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 Global Correlations module to find global opportunities by holding instruments from different markets.