Correlation Between Global Engine and Kyndryl Holdings

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

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

Diversification Opportunities for Global Engine and Kyndryl Holdings

-0.05

Correlation Coefficient

Global Engine  Kyndryl Holdings

Good diversification

The 3 months correlation between Global and Kyndryl is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Global Engine Group and Kyndryl Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyndryl Holdings and Global Engine 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 Global Engine Group 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 Global Engine i.e., Global Engine and Kyndryl Holdings go up and down completely randomly.

Pair Corralation between Global Engine and Kyndryl Holdings

Considering the 90-day investment horizon Global Engine Group is expected to generate 5.71 times more return on investment than Kyndryl Holdings. However, Global Engine is 5.71 times more volatile than Kyndryl Holdings. It trades about 0.02 of its potential returns per unit of risk. Kyndryl Holdings is currently generating about 0.07 per unit of risk. If you would invest  172.00  in Global Engine Group on May 5, 2025 and sell it today you would lose (74.00) from holding Global Engine Group or give up 43.02% of portfolio value over 90 days.

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

Global Engine Group  vs.  Kyndryl Holdings

Global Engine Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Global Engine Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak essential indicators, Global Engine exhibited solid returns over the last few months and may actually be approaching a breakup point.

Kyndryl Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kyndryl Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Kyndryl Holdings may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Global Engine and Kyndryl Holdings

The main advantage of trading using opposite Global Engine and Kyndryl Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Engine 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 Global Engine Group 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.