Correlation Between Kyndryl Holdings and Brand Engagement
Can any of the company-specific risk be diversified away by investing in both Kyndryl Holdings and Brand Engagement 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 Brand Engagement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyndryl Holdings and Brand Engagement Network, you can compare the effects of market volatilities on Kyndryl Holdings and Brand Engagement 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 Brand Engagement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyndryl Holdings and Brand Engagement.
Diversification Opportunities for Kyndryl Holdings and Brand Engagement
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kyndryl and Brand is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and Brand Engagement Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brand Engagement Network 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 Brand Engagement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brand Engagement Network has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and Brand Engagement go up and down completely randomly.
Pair Corralation between Kyndryl Holdings and Brand Engagement
Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to generate 17.16 times less return on investment than Brand Engagement. But when comparing it to its historical volatility, Kyndryl Holdings is 12.24 times less risky than Brand Engagement. It trades about 0.09 of its potential returns per unit of risk. Brand Engagement Network is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3.06 in Brand Engagement Network on August 29, 2024 and sell it today you would lose (0.95) from holding Brand Engagement Network or give up 31.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 72.01% |
| Values | Daily Returns |
Kyndryl Holdings vs. Brand Engagement Network
Performance |
| Timeline |
| Kyndryl Holdings |
| Brand Engagement Network |
Kyndryl Holdings and Brand Engagement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyndryl Holdings and Brand Engagement
The main advantage of trading using opposite Kyndryl Holdings and Brand Engagement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyndryl Holdings position performs unexpectedly, Brand Engagement 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 Brand Engagement will offset losses from the drop in Brand Engagement's long position.| Kyndryl Holdings vs. Organon Co | Kyndryl Holdings vs. Warner Bros Discovery | Kyndryl Holdings vs. Viatris | Kyndryl Holdings vs. GE HealthCare Technologies |
| Brand Engagement vs. Fiserv, | Brand Engagement vs. Gartner | Brand Engagement vs. Kyndryl Holdings | Brand Engagement vs. Digimarc |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| 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 | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |