Correlation Between Legato Merger and HUMANA
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By analyzing existing cross correlation between Legato Merger Corp and HUMANA INC, you can compare the effects of market volatilities on Legato Merger and HUMANA 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 Legato Merger with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legato Merger and HUMANA.
Diversification Opportunities for Legato Merger and HUMANA
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Legato and HUMANA is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Legato Merger Corp and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Legato Merger 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 Legato Merger Corp are associated (or correlated) with HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of Legato Merger i.e., Legato Merger and HUMANA go up and down completely randomly.
Pair Corralation between Legato Merger and HUMANA
Given the investment horizon of 90 days Legato Merger Corp is expected to generate 0.08 times more return on investment than HUMANA. However, Legato Merger Corp is 11.96 times less risky than HUMANA. It trades about 0.2 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.19 per unit of risk. If you would invest 1,027 in Legato Merger Corp on September 13, 2024 and sell it today you would earn a total of 4.23 from holding Legato Merger Corp or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Legato Merger Corp vs. HUMANA INC
Performance |
| Timeline |
| Legato Merger Corp |
| HUMANA INC |
Legato Merger and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legato Merger and HUMANA
The main advantage of trading using opposite Legato Merger and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legato Merger position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.| Legato Merger vs. Lazard | Legato Merger vs. PJT Partners | Legato Merger vs. Moelis Co | Legato Merger vs. Houlihan Lokey |
| HUMANA vs. Morgan Stanley | HUMANA vs. Infosys Ltd ADR | HUMANA vs. Citizens Bancorp Investment | HUMANA vs. Small Cap Premium |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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