Correlation Between Kyndryl Holdings and Golden Agri-Resources
Can any of the company-specific risk be diversified away by investing in both Kyndryl Holdings and Golden Agri-Resources 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 Golden Agri-Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyndryl Holdings and Golden Agri Resources, you can compare the effects of market volatilities on Kyndryl Holdings and Golden Agri-Resources 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 Golden Agri-Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyndryl Holdings and Golden Agri-Resources.
Diversification Opportunities for Kyndryl Holdings and Golden Agri-Resources
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kyndryl and Golden is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and Golden Agri Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Agri Resources 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 Golden Agri-Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Agri Resources has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and Golden Agri-Resources go up and down completely randomly.
Pair Corralation between Kyndryl Holdings and Golden Agri-Resources
Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to generate 0.33 times more return on investment than Golden Agri-Resources. However, Kyndryl Holdings is 3.04 times less risky than Golden Agri-Resources. It trades about 0.08 of its potential returns per unit of risk. Golden Agri Resources is currently generating about 0.02 per unit of risk. If you would invest 1,425 in Kyndryl Holdings on December 1, 2024 and sell it today you would earn a total of 2,383 from holding Kyndryl Holdings or generate 167.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 26.92% |
| Values | Daily Returns |
Kyndryl Holdings vs. Golden Agri Resources
Performance |
| Timeline |
| Kyndryl Holdings |
| Golden Agri Resources |
Kyndryl Holdings and Golden Agri-Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyndryl Holdings and Golden Agri-Resources
The main advantage of trading using opposite Kyndryl Holdings and Golden Agri-Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyndryl Holdings position performs unexpectedly, Golden Agri-Resources 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 Golden Agri-Resources will offset losses from the drop in Golden Agri-Resources' long position.| Kyndryl Holdings vs. Organon Co | Kyndryl Holdings vs. Warner Bros Discovery | Kyndryl Holdings vs. Viatris | Kyndryl Holdings vs. GE HealthCare Technologies |
| Golden Agri-Resources vs. Wilmar International | Golden Agri-Resources vs. SLC Agricola SA | Golden Agri-Resources vs. Brasilagro Adr | Golden Agri-Resources vs. Alico Inc |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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