Correlation Between Amdocs and Kyndryl Holdings

Can any of the company-specific risk be diversified away by investing in both Amdocs 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 Amdocs and Kyndryl Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amdocs and Kyndryl Holdings, you can compare the effects of market volatilities on Amdocs 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 Amdocs with a short position of Kyndryl Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amdocs and Kyndryl Holdings.

Diversification Opportunities for Amdocs and Kyndryl Holdings

0.69

Correlation Coefficient

Amdocs  Kyndryl Holdings

Poor diversification

The 3 months correlation between Amdocs and Kyndryl is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Amdocs and Kyndryl Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyndryl Holdings and Amdocs 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 Amdocs 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 Amdocs i.e., Amdocs and Kyndryl Holdings go up and down completely randomly.

Pair Corralation between Amdocs and Kyndryl Holdings

Considering the 90-day investment horizon Amdocs is expected to generate 0.74 times more return on investment than Kyndryl Holdings. However, Amdocs is 1.36 times less risky than Kyndryl Holdings. It trades about -0.13 of its potential returns per unit of risk. Kyndryl Holdings is currently generating about -0.18 per unit of risk. If you would invest  8,598  in Amdocs on August 26, 2025 and sell it today you would lose (1,061) from holding Amdocs or give up 12.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Amdocs  vs.  Kyndryl Holdings

Amdocs

Risk-Adjusted Performance

Weakest

Over the last 90 days Amdocs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Kyndryl Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Kyndryl Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in December 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Amdocs and Kyndryl Holdings

The main advantage of trading using opposite Amdocs and Kyndryl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amdocs 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.

The idea behind Amdocs and Kyndryl Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.