Correlation Between Kyndryl Holdings and 98313RAE6

Can any of the company-specific risk be diversified away by investing in both Kyndryl Holdings and 98313RAE6 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 98313RAE6 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kyndryl Holdings and Wynn Macau 5125, you can compare the effects of market volatilities on Kyndryl Holdings and 98313RAE6 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 98313RAE6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyndryl Holdings and 98313RAE6.

Diversification Opportunities for Kyndryl Holdings and 98313RAE6

-0.34

Correlation Coefficient

Kyndryl Holdings  98313RAE6

Very good diversification

The 3 months correlation between Kyndryl and 98313RAE6 is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and Wynn Macau 5125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wynn Macau 5125 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 98313RAE6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wynn Macau 5125 has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and 98313RAE6 go up and down completely randomly.

Pair Corralation between Kyndryl Holdings and 98313RAE6

Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to generate 4.54 times more return on investment than 98313RAE6. However, Kyndryl Holdings is 4.54 times more volatile than Wynn Macau 5125. It trades about 0.26 of its potential returns per unit of risk. Wynn Macau 5125 is currently generating about -0.16 per unit of risk. If you would invest  2,349  in Kyndryl Holdings on October 7, 2024 and sell it today you would earn a total of  1,375  from holding Kyndryl Holdings or generate 58.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.71%
Values	Daily Returns

Kyndryl Holdings  vs.  Wynn Macau 5125

Kyndryl Holdings

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kyndryl Holdings are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Kyndryl Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Wynn Macau 5125

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wynn Macau 5125 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for Wynn Macau 5125 investors.

Pair Trading with Kyndryl Holdings and 98313RAE6

The main advantage of trading using opposite Kyndryl Holdings and 98313RAE6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyndryl Holdings position performs unexpectedly, 98313RAE6 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 98313RAE6 will offset losses from the drop in 98313RAE6's long position.

The idea behind Kyndryl Holdings and Wynn Macau 5125 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.