Correlation Between Kyndryl Holdings and Triterras

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

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

Diversification Opportunities for Kyndryl Holdings and Triterras

0.0

Correlation Coefficient

Kyndryl Holdings  Triterras

Pay attention - limited upside

The 3 months correlation between Kyndryl and Triterras is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and Triterras in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triterras 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 Triterras. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triterras has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and Triterras go up and down completely randomly.

Pair Corralation between Kyndryl Holdings and Triterras

If you would invest  2,804  in Kyndryl Holdings on November 19, 2024 and sell it today you would earn a total of  1,375  from holding Kyndryl Holdings or generate 49.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kyndryl Holdings  vs.  Triterras

Kyndryl Holdings

Risk-Adjusted Performance

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.

Triterras

Risk-Adjusted Performance

Very Weak

Over the last 90 days Triterras has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Triterras is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Kyndryl Holdings and Triterras

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

The idea behind Kyndryl Holdings and Triterras 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.