Correlation Between FactSet Research and Kyndryl Holdings
Can any of the company-specific risk be diversified away by investing in both FactSet Research 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 FactSet Research and Kyndryl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FactSet Research Systems and Kyndryl Holdings, you can compare the effects of market volatilities on FactSet Research 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 FactSet Research with a short position of Kyndryl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of FactSet Research and Kyndryl Holdings.
Diversification Opportunities for FactSet Research and Kyndryl Holdings
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FactSet and Kyndryl is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems and Kyndryl Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyndryl Holdings and FactSet Research 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 FactSet Research Systems 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 FactSet Research i.e., FactSet Research and Kyndryl Holdings go up and down completely randomly.
Pair Corralation between FactSet Research and Kyndryl Holdings
Considering the 90-day investment horizon FactSet Research is expected to generate 4.22 times less return on investment than Kyndryl Holdings. But when comparing it to its historical volatility, FactSet Research Systems is 2.54 times less risky than Kyndryl Holdings. It trades about 0.06 of its potential returns per unit of risk. Kyndryl Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,186 in Kyndryl Holdings on September 3, 2024 and sell it today you would earn a total of 1,285 from holding Kyndryl Holdings or generate 58.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FactSet Research Systems vs. Kyndryl Holdings
Performance |
| Timeline |
| FactSet Research Systems |
| Kyndryl Holdings |
FactSet Research and Kyndryl Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FactSet Research and Kyndryl Holdings
The main advantage of trading using opposite FactSet Research and Kyndryl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FactSet Research 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.| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
| Kyndryl Holdings vs. Accenture plc | Kyndryl Holdings vs. International Business Machines | Kyndryl Holdings vs. ASGN Inc | Kyndryl Holdings vs. ExlService 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |