Correlation Between Cayson Acquisition and Inflection Point

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

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

Diversification Opportunities for Cayson Acquisition and Inflection Point

-0.71

Correlation Coefficient

Cayson Acquisition  Inflection Point

Pay attention - limited upside

The 3 months correlation between Cayson and Inflection is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cayson Acquisition Corp and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq and Cayson Acquisition 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 Cayson Acquisition Corp are associated (or correlated) with Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Cayson Acquisition i.e., Cayson Acquisition and Inflection Point go up and down completely randomly.

Pair Corralation between Cayson Acquisition and Inflection Point

Assuming the 90 days horizon Cayson Acquisition is expected to generate 20.31 times less return on investment than Inflection Point. In addition to that, Cayson Acquisition is 3.34 times more volatile than Inflection Point Acquisition. It trades about 0.0 of its total potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.13 per unit of volatility. If you would invest  1,011  in Inflection Point Acquisition on May 2, 2025 and sell it today you would earn a total of  37.00  from holding Inflection Point Acquisition or generate 3.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Cayson Acquisition Corp  vs.  Inflection Point Acquisition

Cayson Acquisition Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cayson Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cayson Acquisition is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Inflection Point Acq

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Inflection Point Acquisition are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Inflection Point is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cayson Acquisition and Inflection Point

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

The idea behind Cayson Acquisition Corp and Inflection Point Acquisition 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.