Correlation Between Cytek Biosciences and Orthofix Medical
Can any of the company-specific risk be diversified away by investing in both Cytek Biosciences and Orthofix 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 Orthofix 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 Orthofix Medical, you can compare the effects of market volatilities on Cytek Biosciences and Orthofix 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 Orthofix Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytek Biosciences and Orthofix Medical.
Diversification Opportunities for Cytek Biosciences and Orthofix Medical
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cytek and Orthofix is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Orthofix Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orthofix 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 Orthofix Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orthofix Medical has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Orthofix Medical go up and down completely randomly.
Pair Corralation between Cytek Biosciences and Orthofix Medical
Given the investment horizon of 90 days Cytek Biosciences is expected to generate 2.17 times less return on investment than Orthofix Medical. In addition to that, Cytek Biosciences is 1.21 times more volatile than Orthofix Medical. It trades about 0.01 of its total potential returns per unit of risk. Orthofix Medical is currently generating about 0.02 per unit of volatility. If you would invest 1,986 in Orthofix Medical on August 31, 2024 and sell it today you would lose (33.00) from holding Orthofix Medical or give up 1.66% 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. Orthofix Medical
Performance |
| Timeline |
| Cytek Biosciences |
| Orthofix Medical |
Cytek Biosciences and Orthofix Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cytek Biosciences and Orthofix Medical
The main advantage of trading using opposite Cytek Biosciences and Orthofix Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytek Biosciences position performs unexpectedly, Orthofix 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 Orthofix Medical will offset losses from the drop in Orthofix Medical's long position.| Cytek Biosciences vs. Orthopediatrics Corp | Cytek Biosciences vs. Electromed | Cytek Biosciences vs. Pulmonx Corp | Cytek Biosciences vs. Treace Medical Concepts |
| Orthofix Medical vs. Abbott Laboratories | Orthofix Medical vs. Medtronic PLC | Orthofix Medical vs. Edwards Lifesciences Corp | Orthofix Medical vs. ZimVie Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
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