Correlation Between Kyndryl Holdings and BIT Mining
Can any of the company-specific risk be diversified away by investing in both Kyndryl Holdings and BIT Mining 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 BIT Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyndryl Holdings and BIT Mining, you can compare the effects of market volatilities on Kyndryl Holdings and BIT Mining 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 BIT Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyndryl Holdings and BIT Mining.
Diversification Opportunities for Kyndryl Holdings and BIT Mining
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kyndryl and BIT is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining 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 BIT Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Mining has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and BIT Mining go up and down completely randomly.
Pair Corralation between Kyndryl Holdings and BIT Mining
Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to generate 1.11 times more return on investment than BIT Mining. However, Kyndryl Holdings is 1.11 times more volatile than BIT Mining. It trades about 0.17 of its potential returns per unit of risk. BIT Mining is currently generating about -0.36 per unit of risk. If you would invest 3,826 in Kyndryl Holdings on November 18, 2024 and sell it today you would earn a total of 353.00 from holding Kyndryl Holdings or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyndryl Holdings vs. BIT Mining
Performance |
| Timeline |
| Kyndryl Holdings |
| BIT Mining |
Kyndryl Holdings and BIT Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyndryl Holdings and BIT Mining
The main advantage of trading using opposite Kyndryl Holdings and BIT Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyndryl Holdings position performs unexpectedly, BIT Mining 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 BIT Mining will offset losses from the drop in BIT Mining's long position.| Kyndryl Holdings vs. Organon Co | Kyndryl Holdings vs. Warner Bros Discovery | Kyndryl Holdings vs. Viatris | Kyndryl Holdings vs. GE HealthCare Technologies |
| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI International |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |