IBM vs KD: Correlation
Measured on weekly returns over the past three years, IBM (IBM) and Kyndryl Holdings, Inc. (KD) carry a correlation of 0.41, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IBM and KD?
Over the past 3 years, IBM and KD moved with a correlation of 0.41, which is moderate. The relationship has been stable: the 1-year correlation (0.48) sits close to the 3-year figure. Over 5 years the correlation is 0.32, and the annualized covariance of weekly returns is 751.1 %².
Among the 28 assets we track against IBM, KD ranks #13 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months IBM outperformed by 58.1 percentage points (+0.1% for IBM against -58.0% for KD). One caveat on sizing: KD is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
IBM vs KD: side by side
| IBM (IBM) | KD (Kyndryl Holdings, Inc.) | |
|---|---|---|
| 1-year return | +0.1% | -58.0% |
| 5-year return | +117.6% | -67.5% |
| Volatility (ann.) | 34.7% | 53.4% |
| Beta vs S&P 500 | 0.78 | 1.59 |
| Max drawdown (3Y) | -37.5% | -75.6% |
| Market cap | $225.0B | $2.9B |
| P/E (trailing) | 20.4 | 34.0 |
| Dividend yield | 2.93% | 0.00% |
| Sector / category | Information Technology | US Listed |
Year-by-year returns
| Year | IBM | KD |
|---|---|---|
| 2022 | +10.6% | -38.6% |
| 2023 | +21.8% | +86.9% |
| 2024 | +39.3% | +66.5% |
| 2025 | +38.2% | -23.2% |
| 2026 | -17.7% | -50.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IBM and KD good diversifiers for each other?
Reasonably. At 0.41, IBM and KD keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between IBM and KD?
The IBM/KD correlation stands at 0.41 on a 3-year window (1 year: 0.48, 5 years: 0.32), computed from weekly returns as of 2026-08-27.
Is KD a good diversifier for IBM?
Reasonably. At 0.41, IBM and KD keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.41 mean?
A reading of 0.41 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ibm-vs-kd.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ibm-vs-kd/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IBM correlations · KD correlations
