Correlation Between Kyndryl Holdings and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both Kyndryl Holdings and Accenture Plc 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 Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyndryl Holdings and Accenture plc, you can compare the effects of market volatilities on Kyndryl Holdings and Accenture Plc 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 Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyndryl Holdings and Accenture Plc.
Diversification Opportunities for Kyndryl Holdings and Accenture Plc
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kyndryl and Accenture is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc 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 Accenture Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accenture plc has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and Accenture Plc go up and down completely randomly.
Pair Corralation between Kyndryl Holdings and Accenture Plc
Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to generate 2.63 times more return on investment than Accenture Plc. However, Kyndryl Holdings is 2.63 times more volatile than Accenture plc. It trades about 0.33 of its potential returns per unit of risk. Accenture plc is currently generating about -0.06 per unit of risk. If you would invest 2,401 in Kyndryl Holdings on August 24, 2024 and sell it today you would earn a total of 848.00 from holding Kyndryl Holdings or generate 35.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyndryl Holdings vs. Accenture plc
Performance |
| Timeline |
| Kyndryl Holdings |
| Accenture plc |
Kyndryl Holdings and Accenture Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyndryl Holdings and Accenture Plc
The main advantage of trading using opposite Kyndryl Holdings and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyndryl Holdings position performs unexpectedly, Accenture Plc 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 Accenture Plc will offset losses from the drop in Accenture Plc's long position.| Kyndryl Holdings vs. Concentrix | Kyndryl Holdings vs. Accenture plc | Kyndryl Holdings vs. International Business Machines | Kyndryl Holdings vs. Infosys Ltd ADR |
| Accenture Plc vs. Globant SA | Accenture Plc vs. Concentrix | Accenture Plc vs. Cognizant Technology Solutions | Accenture Plc vs. CDW Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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