Correlation Between Kyndryl Holdings and Suntory Beverage
Can any of the company-specific risk be diversified away by investing in both Kyndryl Holdings and Suntory Beverage 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 Suntory Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyndryl Holdings and Suntory Beverage Food, you can compare the effects of market volatilities on Kyndryl Holdings and Suntory Beverage 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 Suntory Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyndryl Holdings and Suntory Beverage.
Diversification Opportunities for Kyndryl Holdings and Suntory Beverage
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kyndryl and Suntory is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and Suntory Beverage Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntory Beverage Food 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 Suntory Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntory Beverage Food has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and Suntory Beverage go up and down completely randomly.
Pair Corralation between Kyndryl Holdings and Suntory Beverage
Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to generate 0.16 times more return on investment than Suntory Beverage. However, Kyndryl Holdings is 6.27 times less risky than Suntory Beverage. It trades about 0.1 of its potential returns per unit of risk. Suntory Beverage Food is currently generating about -0.12 per unit of risk. If you would invest 2,186 in Kyndryl Holdings on September 3, 2024 and sell it today you would earn a total of 1,285 from holding Kyndryl Holdings or generate 58.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 34.34% |
| Values | Daily Returns |
Kyndryl Holdings vs. Suntory Beverage Food
Performance |
| Timeline |
| Kyndryl Holdings |
| Suntory Beverage Food |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kyndryl Holdings and Suntory Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyndryl Holdings and Suntory Beverage
The main advantage of trading using opposite Kyndryl Holdings and Suntory Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyndryl Holdings position performs unexpectedly, Suntory Beverage 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 Suntory Beverage will offset losses from the drop in Suntory Beverage's long position.| Kyndryl Holdings vs. Accenture plc | Kyndryl Holdings vs. International Business Machines | Kyndryl Holdings vs. ASGN Inc | Kyndryl Holdings vs. ExlService Holdings |
| Suntory Beverage vs. Suntory Beverage Food | Suntory Beverage vs. Heineken NV | Suntory Beverage vs. Ambev SA ADR | Suntory Beverage vs. Heineken NV |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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