Correlation Between ASGN and Kyndryl Holdings

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

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

Diversification Opportunities for ASGN and Kyndryl Holdings

-0.31

Correlation Coefficient

ASGN  Kyndryl Holdings

Very good diversification

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

Pair Corralation between ASGN and Kyndryl Holdings

If you would invest  3,842  in Kyndryl Holdings on November 29, 2024 and sell it today you would lose (35.00) from holding Kyndryl Holdings or give up 0.91% of portfolio value over 90 days.

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

ASGN Inc  vs.  Kyndryl Holdings

ASGN Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASGN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Kyndryl Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kyndryl Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Kyndryl Holdings may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with ASGN and Kyndryl Holdings

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

The idea behind ASGN Inc and Kyndryl Holdings 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.