Correlation Between Kyndryl Holdings and Humbl

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

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

Diversification Opportunities for Kyndryl Holdings and Humbl

-0.26

Correlation Coefficient

Kyndryl Holdings  Humbl

Very good diversification

The 3 months correlation between Kyndryl and Humbl is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and Humbl Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humbl Inc 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 Humbl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humbl Inc has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and Humbl go up and down completely randomly.

Pair Corralation between Kyndryl Holdings and Humbl

Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to generate 0.24 times more return on investment than Humbl. However, Kyndryl Holdings is 4.16 times less risky than Humbl. It trades about 0.03 of its potential returns per unit of risk. Humbl Inc is currently generating about -0.09 per unit of risk. If you would invest  3,451  in Kyndryl Holdings on December 20, 2024 and sell it today you would earn a total of  96.00  from holding Kyndryl Holdings or generate 2.78% 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.  Humbl Inc

Kyndryl Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kyndryl Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Kyndryl Holdings is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Humbl Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Humbl Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Kyndryl Holdings and Humbl

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

The idea behind Kyndryl Holdings and Humbl Inc 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.

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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.