Correlation Between Oxley Bridge and Legato Merger
Can any of the company-specific risk be diversified away by investing in both Oxley Bridge and Legato Merger 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 Oxley Bridge and Legato Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxley Bridge Acquisition and Legato Merger Corp, you can compare the effects of market volatilities on Oxley Bridge and Legato Merger 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 Oxley Bridge with a short position of Legato Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxley Bridge and Legato Merger.
Diversification Opportunities for Oxley Bridge and Legato Merger
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oxley and Legato is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Oxley Bridge Acquisition and Legato Merger Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legato Merger Corp and Oxley Bridge 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 Oxley Bridge Acquisition are associated (or correlated) with Legato Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legato Merger Corp has no effect on the direction of Oxley Bridge i.e., Oxley Bridge and Legato Merger go up and down completely randomly.
Pair Corralation between Oxley Bridge and Legato Merger
Considering the 90-day investment horizon Oxley Bridge Acquisition is expected to generate 243.78 times more return on investment than Legato Merger. However, Oxley Bridge is 243.78 times more volatile than Legato Merger Corp. It trades about 0.1 of its potential returns per unit of risk. Legato Merger Corp is currently generating about 0.04 per unit of risk. If you would invest 0.00 in Oxley Bridge Acquisition on October 7, 2025 and sell it today you would earn a total of 1,008 from holding Oxley Bridge Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 53.76% |
| Values | Daily Returns |
Oxley Bridge Acquisition vs. Legato Merger Corp
Performance |
| Timeline |
| Oxley Bridge Acquisition |
| Legato Merger Corp |
Oxley Bridge and Legato Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxley Bridge and Legato Merger
The main advantage of trading using opposite Oxley Bridge and Legato Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxley Bridge position performs unexpectedly, Legato Merger 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 Legato Merger will offset losses from the drop in Legato Merger's long position.| Oxley Bridge vs. Lionheart Holdings | Oxley Bridge vs. Jackson Acquisition | Oxley Bridge vs. Launch One Acquisition | Oxley Bridge vs. ProCap Acquisition Corp |
| Legato Merger vs. Mountain Lake Acquisition | Legato Merger vs. Launch One Acquisition | Legato Merger vs. Graf Global Corp | Legato Merger vs. M3 Brigade Acquisition V |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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