Correlation Between Codexis and Cayson Acquisition

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

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

Diversification Opportunities for Codexis and Cayson Acquisition

-0.31

Correlation Coefficient

Codexis  Cayson Acquisition

Very good diversification

The 3 months correlation between Codexis and Cayson is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Cayson Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cayson Acquisition Corp and Codexis 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 Codexis are associated (or correlated) with Cayson Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cayson Acquisition Corp has no effect on the direction of Codexis i.e., Codexis and Cayson Acquisition go up and down completely randomly.

Pair Corralation between Codexis and Cayson Acquisition

Given the investment horizon of 90 days Codexis is expected to generate 4.31 times more return on investment than Cayson Acquisition. However, Codexis is 4.31 times more volatile than Cayson Acquisition Corp. It trades about 0.05 of its potential returns per unit of risk. Cayson Acquisition Corp is currently generating about -0.11 per unit of risk. If you would invest  256.00  in Codexis on May 13, 2025 and sell it today you would earn a total of  23.50  from holding Codexis or generate 9.18% return on investment over 90 days.

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

Codexis  vs.  Cayson Acquisition Corp

Codexis

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Codexis are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Codexis unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 latest unfluctuating 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 Codexis and Cayson Acquisition

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

The idea behind Codexis and Cayson 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.