Correlation Between Kyndryl Holdings and Alithya
Can any of the company-specific risk be diversified away by investing in both Kyndryl Holdings and Alithya 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 Alithya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyndryl Holdings and Alithya Group, you can compare the effects of market volatilities on Kyndryl Holdings and Alithya 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 Alithya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyndryl Holdings and Alithya.
Diversification Opportunities for Kyndryl Holdings and Alithya
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kyndryl and Alithya is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and Alithya Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alithya Group 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 Alithya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alithya Group has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and Alithya go up and down completely randomly.
Pair Corralation between Kyndryl Holdings and Alithya
Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to generate 1.15 times more return on investment than Alithya. However, Kyndryl Holdings is 1.15 times more volatile than Alithya Group. It trades about 0.09 of its potential returns per unit of risk. Alithya Group is currently generating about 0.04 per unit of risk. If you would invest 1,122 in Kyndryl Holdings on August 24, 2024 and sell it today you would earn a total of 2,183 from holding Kyndryl Holdings or generate 194.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 32.06% |
| Values | Daily Returns |
Kyndryl Holdings vs. Alithya Group
Performance |
| Timeline |
| Kyndryl Holdings |
| Alithya Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kyndryl Holdings and Alithya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyndryl Holdings and Alithya
The main advantage of trading using opposite Kyndryl Holdings and Alithya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyndryl Holdings position performs unexpectedly, Alithya 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 Alithya will offset losses from the drop in Alithya's long position.| Kyndryl Holdings vs. Concentrix | Kyndryl Holdings vs. Accenture plc | Kyndryl Holdings vs. International Business Machines | Kyndryl Holdings vs. Cognizant Technology Solutions |
| Alithya vs. Formula Systems 1985 | Alithya vs. CSP Inc | Alithya vs. Nayax | Alithya vs. Information Services Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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