Correlation Between Cayson Acquisition and Primo Brands

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

Diversification Opportunities for Cayson Acquisition and Primo Brands

0.83

Correlation Coefficient

Cayson Acquisition  Primo Brands

Very poor diversification

The 3 months correlation between Cayson and Primo is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cayson Acquisition Corp and Primo Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primo Brands 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 Primo Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primo Brands has no effect on the direction of Cayson Acquisition i.e., Cayson Acquisition and Primo Brands go up and down completely randomly.

Pair Corralation between Cayson Acquisition and Primo Brands

Assuming the 90 days horizon Cayson Acquisition Corp is expected to generate 0.01 times more return on investment than Primo Brands. However, Cayson Acquisition Corp is 68.8 times less risky than Primo Brands. It trades about -0.12 of its potential returns per unit of risk. Primo Brands is currently generating about -0.14 per unit of risk. If you would invest  1,045  in Cayson Acquisition Corp on September 8, 2025 and sell it today you would lose (5.00) from holding Cayson Acquisition Corp or give up 0.48% of portfolio value over 90 days.

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

Cayson Acquisition Corp  vs.  Primo Brands

Cayson Acquisition Corp

Risk-Adjusted Performance

Weakest

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 new stock price uproar, may contribute to short-horizon losses for the private investors.

Primo Brands

Risk-Adjusted Performance

Weakest

Over the last 90 days Primo Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Cayson Acquisition and Primo Brands

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

The idea behind Cayson Acquisition Corp and Primo Brands 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.

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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.