Correlation Between Cytek Biosciences and Omeros

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

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

Diversification Opportunities for Cytek Biosciences and Omeros

0.51

Correlation Coefficient

Cytek Biosciences  Omeros

Very weak diversification

The 3 months correlation between Cytek and Omeros is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Omeros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omeros 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 Omeros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omeros has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Omeros go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Omeros

If you would invest  0.00  in Omeros on October 20, 2024 and sell it today you would earn a total of  0.00  from holding Omeros or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	5.0%
Values	Daily Returns

Cytek Biosciences  vs.  Omeros

Cytek Biosciences

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cytek Biosciences are ranked lower than 3 (%) 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.

Omeros

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Omeros has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak technical and fundamental indicators, Omeros reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cytek Biosciences and Omeros

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

The idea behind Cytek Biosciences and Omeros 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.