Correlation Between Greentown Management and Cayson Acquisition

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

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

Diversification Opportunities for Greentown Management and Cayson Acquisition

-0.18

Correlation Coefficient

Greentown Management  Cayson Acquisition

Good diversification

The 3 months correlation between Greentown and Cayson is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Greentown Management Holdings 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 Greentown Management 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 Greentown Management Holdings 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 Greentown Management i.e., Greentown Management and Cayson Acquisition go up and down completely randomly.

Pair Corralation between Greentown Management and Cayson Acquisition

Assuming the 90 days horizon Greentown Management Holdings is expected to generate 0.76 times more return on investment than Cayson Acquisition. However, Greentown Management Holdings is 1.32 times less risky than Cayson Acquisition. It trades about 0.12 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  47.00  in Greentown Management Holdings on June 1, 2025 and sell it today you would earn a total of  3.00  from holding Greentown Management Holdings or generate 6.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Greentown Management Holdings  vs.  Cayson Acquisition Corp

Greentown Management

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Greentown Management Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical indicators, Greentown Management is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

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 uncertain 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 Greentown Management and Cayson Acquisition

The main advantage of trading using opposite Greentown Management and Cayson Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greentown Management 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 Greentown Management Holdings 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.

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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.