Correlation Between Concentrix and Kyndryl Holdings
Can any of the company-specific risk be diversified away by investing in both Concentrix and Kyndryl Holdings 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 Concentrix and Kyndryl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concentrix and Kyndryl Holdings, you can compare the effects of market volatilities on Concentrix and Kyndryl Holdings 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 Concentrix with a short position of Kyndryl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concentrix and Kyndryl Holdings.
Diversification Opportunities for Concentrix and Kyndryl Holdings
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Concentrix and Kyndryl is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Concentrix and Kyndryl Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyndryl Holdings and Concentrix 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 Concentrix are associated (or correlated) with Kyndryl Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyndryl Holdings has no effect on the direction of Concentrix i.e., Concentrix and Kyndryl Holdings go up and down completely randomly.
Pair Corralation between Concentrix and Kyndryl Holdings
Given the investment horizon of 90 days Concentrix is expected to generate 19.63 times less return on investment than Kyndryl Holdings. But when comparing it to its historical volatility, Concentrix is 1.22 times less risky than Kyndryl Holdings. It trades about 0.03 of its potential returns per unit of risk. Kyndryl Holdings is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 2,377 in Kyndryl Holdings on August 27, 2024 and sell it today you would earn a total of 1,013 from holding Kyndryl Holdings or generate 42.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concentrix vs. Kyndryl Holdings
Performance |
| Timeline |
| Concentrix |
| Kyndryl Holdings |
Concentrix and Kyndryl Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concentrix and Kyndryl Holdings
The main advantage of trading using opposite Concentrix and Kyndryl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concentrix position performs unexpectedly, Kyndryl Holdings 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 Kyndryl Holdings will offset losses from the drop in Kyndryl Holdings' long position.| Concentrix vs. Oneconnect Financial Technology | Concentrix vs. Global Business Travel | Concentrix vs. Alight Inc | Concentrix vs. CS Disco LLC |
| Kyndryl Holdings vs. Data Storage Corp | Kyndryl Holdings vs. Usio Inc | Kyndryl Holdings vs. ARB IOT Group | Kyndryl Holdings vs. FiscalNote Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |