Correlation Between Cytek Biosciences and Heska

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

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

Diversification Opportunities for Cytek Biosciences and Heska

0.6

Correlation Coefficient

Cytek Biosciences  Heska

Poor diversification

The 3 months correlation between Cytek and Heska is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Heska in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heska and Cytek Biosciences 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 Cytek Biosciences are associated (or correlated) with Heska. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heska has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Heska go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Heska

If you would invest  680.00  in Cytek Biosciences on October 9, 2024 and sell it today you would lose (1.00) from holding Cytek Biosciences or give up 0.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	5.26%
Values	Daily Returns

Cytek Biosciences  vs.  Heska

Cytek Biosciences

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cytek Biosciences are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward-looking signals, Cytek Biosciences sustained solid returns over the last few months and may actually be approaching a breakup point.

Heska

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Heska has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking signals, Heska is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cytek Biosciences and Heska

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

The idea behind Cytek Biosciences and Heska 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.

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.