Correlation Between Kyndryl Holdings and 9F

Can any of the company-specific risk be diversified away by investing in both Kyndryl Holdings and 9F 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 9F into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kyndryl Holdings and 9F Inc, you can compare the effects of market volatilities on Kyndryl Holdings and 9F 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 9F. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyndryl Holdings and 9F.

Diversification Opportunities for Kyndryl Holdings and 9F

0.72

Correlation Coefficient

Kyndryl Holdings  9F

Poor diversification

The 3 months correlation between Kyndryl and 9F is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and 9F Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 9F Inc 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 9F. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 9F Inc has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and 9F go up and down completely randomly.

Pair Corralation between Kyndryl Holdings and 9F

Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to generate 0.45 times more return on investment than 9F. However, Kyndryl Holdings is 2.21 times less risky than 9F. It trades about 0.09 of its potential returns per unit of risk. 9F Inc is currently generating about -0.01 per unit of risk. If you would invest  1,213  in Kyndryl Holdings on February 8, 2025 and sell it today you would earn a total of  2,450  from holding Kyndryl Holdings or generate 201.98% return on investment over 90 days.

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

Kyndryl Holdings  vs.  9F Inc

Kyndryl Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kyndryl Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

9F Inc

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 9F Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, 9F unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kyndryl Holdings and 9F

The main advantage of trading using opposite Kyndryl Holdings and 9F positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyndryl Holdings position performs unexpectedly, 9F 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 9F will offset losses from the drop in 9F's long position.

The idea behind Kyndryl Holdings and 9F Inc 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.