Correlation Between Kyndryl Holdings and Nano Dimension
Can any of the company-specific risk be diversified away by investing in both Kyndryl Holdings and Nano Dimension 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 Nano Dimension into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyndryl Holdings and Nano Dimension, you can compare the effects of market volatilities on Kyndryl Holdings and Nano Dimension 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 Nano Dimension. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyndryl Holdings and Nano Dimension.
Diversification Opportunities for Kyndryl Holdings and Nano Dimension
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kyndryl and Nano is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and Nano Dimension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Dimension 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 Nano Dimension. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Dimension has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and Nano Dimension go up and down completely randomly.
Pair Corralation between Kyndryl Holdings and Nano Dimension
Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to generate 1.61 times more return on investment than Nano Dimension. However, Kyndryl Holdings is 1.61 times more volatile than Nano Dimension. It trades about 0.43 of its potential returns per unit of risk. Nano Dimension is currently generating about 0.0 per unit of risk. If you would invest 2,374 in Kyndryl Holdings on August 31, 2024 and sell it today you would earn a total of 1,108 from holding Kyndryl Holdings or generate 46.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyndryl Holdings vs. Nano Dimension
Performance |
| Timeline |
| Kyndryl Holdings |
| Nano Dimension |
Kyndryl Holdings and Nano Dimension Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyndryl Holdings and Nano Dimension
The main advantage of trading using opposite Kyndryl Holdings and Nano Dimension positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyndryl Holdings position performs unexpectedly, Nano Dimension 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 Nano Dimension will offset losses from the drop in Nano Dimension's long position.| Kyndryl Holdings vs. Innodata | Kyndryl Holdings vs. International Business Machines | Kyndryl Holdings vs. Aurora Innovation | Kyndryl Holdings vs. BigBearai Holdings |
| Nano Dimension vs. Desktop Metal | Nano Dimension vs. 3D Systems | Nano Dimension vs. Markforged Holding Corp | Nano Dimension vs. Stratasys |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |