Correlation Between Cantaloupe and CiT

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

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

Diversification Opportunities for Cantaloupe and CiT

0.53

Correlation Coefficient

Cantaloupe  CiT

Very weak diversification

The 3 months correlation between Cantaloupe and CiT is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cantaloupe and CiT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CiT Inc and Cantaloupe 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 Cantaloupe are associated (or correlated) with CiT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CiT Inc has no effect on the direction of Cantaloupe i.e., Cantaloupe and CiT go up and down completely randomly.

Pair Corralation between Cantaloupe and CiT

Given the investment horizon of 90 days Cantaloupe is expected to generate 0.15 times more return on investment than CiT. However, Cantaloupe is 6.46 times less risky than CiT. It trades about -0.09 of its potential returns per unit of risk. CiT Inc is currently generating about -0.06 per unit of risk. If you would invest  1,087  in Cantaloupe on August 26, 2025 and sell it today you would lose (28.00) from holding Cantaloupe or give up 2.58% of portfolio value over 90 days.

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

Cantaloupe  vs.  CiT Inc

Cantaloupe

Risk-Adjusted Performance

Weakest

Over the last 90 days Cantaloupe has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, Cantaloupe is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

CiT Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days CiT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Cantaloupe and CiT

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

The idea behind Cantaloupe and CiT Inc 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.