Correlation Between Kyndryl Holdings and Givaudan
Can any of the company-specific risk be diversified away by investing in both Kyndryl Holdings and Givaudan 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 Kyndryl Holdings and Givaudan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyndryl Holdings and Givaudan SA ADR, you can compare the effects of market volatilities on Kyndryl Holdings and Givaudan 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 Kyndryl Holdings with a short position of Givaudan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyndryl Holdings and Givaudan.
Diversification Opportunities for Kyndryl Holdings and Givaudan
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kyndryl and Givaudan is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and Givaudan SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Givaudan SA ADR and Kyndryl Holdings 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 Kyndryl Holdings are associated (or correlated) with Givaudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Givaudan SA ADR has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and Givaudan go up and down completely randomly.
Pair Corralation between Kyndryl Holdings and Givaudan
Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to generate 1.16 times less return on investment than Givaudan. In addition to that, Kyndryl Holdings is 1.89 times more volatile than Givaudan SA ADR. It trades about 0.03 of its total potential returns per unit of risk. Givaudan SA ADR is currently generating about 0.06 per unit of volatility. If you would invest 8,825 in Givaudan SA ADR on December 1, 2024 and sell it today you would earn a total of 172.00 from holding Givaudan SA ADR or generate 1.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Kyndryl Holdings vs. Givaudan SA ADR
Performance |
Timeline |
Kyndryl Holdings |
Givaudan SA ADR |
Kyndryl Holdings and Givaudan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kyndryl Holdings and Givaudan
The main advantage of trading using opposite Kyndryl Holdings and Givaudan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyndryl Holdings position performs unexpectedly, Givaudan 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 Givaudan will offset losses from the drop in Givaudan's long position.Kyndryl Holdings vs. Organon Co | Kyndryl Holdings vs. Warner Bros Discovery | Kyndryl Holdings vs. Viatris | Kyndryl Holdings vs. GE HealthCare Technologies |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |