Correlation Between Cytek Biosciences and Inari Medical
Can any of the company-specific risk be diversified away by investing in both Cytek Biosciences and Inari Medical 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 Inari Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cytek Biosciences and Inari Medical, you can compare the effects of market volatilities on Cytek Biosciences and Inari Medical 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 Inari Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytek Biosciences and Inari Medical.
Diversification Opportunities for Cytek Biosciences and Inari Medical
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cytek and Inari is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Inari Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inari Medical 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 Inari Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inari Medical has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Inari Medical go up and down completely randomly.
Pair Corralation between Cytek Biosciences and Inari Medical
Given the investment horizon of 90 days Cytek Biosciences is expected to under-perform the Inari Medical. In addition to that, Cytek Biosciences is 1.26 times more volatile than Inari Medical. It trades about 0.0 of its total potential returns per unit of risk. Inari Medical is currently generating about 0.0 per unit of volatility. If you would invest 6,856 in Inari Medical on September 12, 2024 and sell it today you would lose (1,351) from holding Inari Medical or give up 19.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cytek Biosciences vs. Inari Medical
Performance |
| Timeline |
| Cytek Biosciences |
| Inari Medical |
Cytek Biosciences and Inari Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cytek Biosciences and Inari Medical
The main advantage of trading using opposite Cytek Biosciences and Inari Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytek Biosciences position performs unexpectedly, Inari Medical 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 Inari Medical will offset losses from the drop in Inari Medical's long position.| Cytek Biosciences vs. Inari Medical | Cytek Biosciences vs. CONMED | Cytek Biosciences vs. Glaukos Corp | Cytek Biosciences vs. Nevro Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |