Correlation Between Kyndryl Holdings and Kuehne +

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

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

Diversification Opportunities for Kyndryl Holdings and Kuehne +

-0.69

Correlation Coefficient

Kyndryl Holdings  Kuehne +

Excellent diversification

The 3 months correlation between Kyndryl and Kuehne is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and Kuehne Nagel International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuehne Nagel Interna 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 Kuehne +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuehne Nagel Interna has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and Kuehne + go up and down completely randomly.

Pair Corralation between Kyndryl Holdings and Kuehne +

Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to generate 2.56 times more return on investment than Kuehne +. However, Kyndryl Holdings is 2.56 times more volatile than Kuehne Nagel International. It trades about 0.24 of its potential returns per unit of risk. Kuehne Nagel International is currently generating about -0.36 per unit of risk. If you would invest  2,280  in Kyndryl Holdings on September 2, 2024 and sell it today you would earn a total of  1,191  from holding Kyndryl Holdings or generate 52.24% return on investment over 90 days.

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

Kyndryl Holdings  vs.  Kuehne Nagel International

Kyndryl Holdings

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kyndryl Holdings are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Kyndryl Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Kuehne Nagel Interna

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kuehne Nagel International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Kyndryl Holdings and Kuehne +

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

The idea behind Kyndryl Holdings and Kuehne Nagel International 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.