Correlation Between Kyndryl Holdings and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Kyndryl Holdings and Fidelity National 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 Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyndryl Holdings and Fidelity National Information, you can compare the effects of market volatilities on Kyndryl Holdings and Fidelity National 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 Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyndryl Holdings and Fidelity National.
Diversification Opportunities for Kyndryl Holdings and Fidelity National
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kyndryl and Fidelity is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National 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 Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and Fidelity National go up and down completely randomly.
Pair Corralation between Kyndryl Holdings and Fidelity National
Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to generate 1.7 times more return on investment than Fidelity National. However, Kyndryl Holdings is 1.7 times more volatile than Fidelity National Information. It trades about 0.09 of its potential returns per unit of risk. Fidelity National Information is currently generating about 0.02 per unit of risk. If you would invest 1,359 in Kyndryl Holdings on October 25, 2024 and sell it today you would earn a total of 2,533 from holding Kyndryl Holdings or generate 186.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyndryl Holdings vs. Fidelity National Information
Performance |
| Timeline |
| Kyndryl Holdings |
| Fidelity National |
Kyndryl Holdings and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyndryl Holdings and Fidelity National
The main advantage of trading using opposite Kyndryl Holdings and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyndryl Holdings position performs unexpectedly, Fidelity National 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 Fidelity National will offset losses from the drop in Fidelity National's long position.| Kyndryl Holdings vs. Organon Co | Kyndryl Holdings vs. Warner Bros Discovery | Kyndryl Holdings vs. Viatris | Kyndryl Holdings vs. GE HealthCare Technologies |
| Fidelity National vs. Jack Henry Associates | Fidelity National vs. Cognizant Technology Solutions | Fidelity National vs. CDW Corp | Fidelity National vs. Gartner |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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