Correlation Between Emergent Biosolutions and Kyndryl Holdings

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

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

Diversification Opportunities for Emergent Biosolutions and Kyndryl Holdings

-0.68

Correlation Coefficient

Emergent Biosolutions  Kyndryl Holdings

Excellent diversification

The 3 months correlation between Emergent and Kyndryl is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Emergent Biosolutions and Kyndryl Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyndryl Holdings and Emergent Biosolutions 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 Emergent Biosolutions 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 Emergent Biosolutions i.e., Emergent Biosolutions and Kyndryl Holdings go up and down completely randomly.

Pair Corralation between Emergent Biosolutions and Kyndryl Holdings

Considering the 90-day investment horizon Emergent Biosolutions is expected to generate 2.24 times more return on investment than Kyndryl Holdings. However, Emergent Biosolutions is 2.24 times more volatile than Kyndryl Holdings. It trades about 0.19 of its potential returns per unit of risk. Kyndryl Holdings is currently generating about -0.1 per unit of risk. If you would invest  595.00  in Emergent Biosolutions on August 3, 2025 and sell it today you would earn a total of  653.00  from holding Emergent Biosolutions or generate 109.75% return on investment over 90 days.

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

Emergent Biosolutions  vs.  Kyndryl Holdings

Emergent Biosolutions

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Emergent Biosolutions are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating fundamental drivers, Emergent Biosolutions unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 uncertain 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 Emergent Biosolutions and Kyndryl Holdings

The main advantage of trading using opposite Emergent Biosolutions and Kyndryl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emergent Biosolutions 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 Emergent Biosolutions 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.