Correlation Between Kyndryl Holdings and DXC Technology
Can any of the company-specific risk be diversified away by investing in both Kyndryl Holdings and DXC Technology 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 DXC Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kyndryl Holdings and DXC Technology Co, you can compare the effects of market volatilities on Kyndryl Holdings and DXC Technology 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 DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kyndryl Holdings and DXC Technology.
Diversification Opportunities for Kyndryl Holdings and DXC Technology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kyndryl and DXC is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kyndryl Holdings and DXC Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology 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 DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of Kyndryl Holdings i.e., Kyndryl Holdings and DXC Technology go up and down completely randomly.
Pair Corralation between Kyndryl Holdings and DXC Technology
Allowing for the 90-day total investment horizon Kyndryl Holdings is expected to under-perform the DXC Technology. But the stock apears to be less risky and, when comparing its historical volatility, Kyndryl Holdings is 1.43 times less risky than DXC Technology. The stock trades about -0.13 of its potential returns per unit of risk. The DXC Technology Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,378 in DXC Technology Co on August 14, 2025 and sell it today you would lose (26.00) from holding DXC Technology Co or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kyndryl Holdings vs. DXC Technology Co
Performance |
| Timeline |
| Kyndryl Holdings |
| DXC Technology |
Kyndryl Holdings and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kyndryl Holdings and DXC Technology
The main advantage of trading using opposite Kyndryl Holdings and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kyndryl Holdings position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| Kyndryl Holdings vs. ExlService Holdings | Kyndryl Holdings vs. Genpact Limited | Kyndryl Holdings vs. Dolby Laboratories | Kyndryl Holdings vs. Waystar Holding Corp |
| DXC Technology vs. CLARIVATE PLC | DXC Technology vs. Innodata | DXC Technology vs. C3 Ai Inc | DXC Technology vs. Formula Systems 1985 |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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