Correlation Between Kyndryl Holdings and Nayax

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

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

Diversification Opportunities for Kyndryl Holdings and Nayax

0.84

Correlation Coefficient

Kyndryl Holdings  Nayax

Very poor diversification

The 3 months correlation between Kyndryl and Nayax is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and Nayax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nayax 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 Nayax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nayax has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and Nayax go up and down completely randomly.

Pair Corralation between Kyndryl Holdings and Nayax

Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to under-perform the Nayax. In addition to that, Kyndryl Holdings is 1.92 times more volatile than Nayax. It trades about -0.01 of its total potential returns per unit of risk. Nayax is currently generating about 0.14 per unit of volatility. If you would invest  3,645  in Nayax on November 29, 2024 and sell it today you would earn a total of  165.00  from holding Nayax or generate 4.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	95.45%
Values	Daily Returns

Kyndryl Holdings  vs.  Nayax

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.

Nayax

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nayax are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Nayax showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kyndryl Holdings and Nayax

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

The idea behind Kyndryl Holdings and Nayax 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..