Correlation Between Nayax and Kyndryl Holdings
Can any of the company-specific risk be diversified away by investing in both Nayax and Kyndryl Holdings 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 Nayax and Kyndryl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nayax and Kyndryl Holdings, you can compare the effects of market volatilities on Nayax and Kyndryl Holdings 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 Nayax with a short position of Kyndryl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nayax and Kyndryl Holdings.
Diversification Opportunities for Nayax and Kyndryl Holdings
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nayax and Kyndryl is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Nayax and Kyndryl Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyndryl Holdings and Nayax 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 Nayax are associated (or correlated) with Kyndryl Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyndryl Holdings has no effect on the direction of Nayax i.e., Nayax and Kyndryl Holdings go up and down completely randomly.
Pair Corralation between Nayax and Kyndryl Holdings
Given the investment horizon of 90 days Nayax is expected to generate 1.46 times less return on investment than Kyndryl Holdings. In addition to that, Nayax is 1.22 times more volatile than Kyndryl Holdings. It trades about 0.04 of its total potential returns per unit of risk. Kyndryl Holdings is currently generating about 0.07 per unit of volatility. If you would invest 2,721 in Kyndryl Holdings on August 24, 2024 and sell it today you would earn a total of 528.00 from holding Kyndryl Holdings or generate 19.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Nayax vs. Kyndryl Holdings
Performance |
| Timeline |
| Nayax |
| Kyndryl Holdings |
Nayax and Kyndryl Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nayax and Kyndryl Holdings
The main advantage of trading using opposite Nayax and Kyndryl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nayax position performs unexpectedly, Kyndryl Holdings 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 Kyndryl Holdings will offset losses from the drop in Kyndryl Holdings' long position.| Nayax vs. The Hackett Group | Nayax vs. CSP Inc | Nayax vs. Formula Systems 1985 | Nayax vs. Information Services Group |
| Kyndryl Holdings vs. Organon Co | Kyndryl Holdings vs. Warner Bros Discovery | Kyndryl Holdings vs. Viatris | Kyndryl Holdings vs. GE HealthCare Technologies |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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