Correlation Between Cytek Biosciences and Profound Medical
Can any of the company-specific risk be diversified away by investing in both Cytek Biosciences and Profound 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 Profound 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 Profound Medical Corp, you can compare the effects of market volatilities on Cytek Biosciences and Profound 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 Profound Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytek Biosciences and Profound Medical.
Diversification Opportunities for Cytek Biosciences and Profound Medical
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cytek and Profound is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Profound Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profound Medical Corp 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 Profound Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profound Medical Corp has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Profound Medical go up and down completely randomly.
Pair Corralation between Cytek Biosciences and Profound Medical
Given the investment horizon of 90 days Cytek Biosciences is expected to under-perform the Profound Medical. In addition to that, Cytek Biosciences is 1.33 times more volatile than Profound Medical Corp. It trades about -0.01 of its total potential returns per unit of risk. Profound Medical Corp is currently generating about 0.03 per unit of volatility. If you would invest 757.00 in Profound Medical Corp on September 3, 2024 and sell it today you would earn a total of 55.00 from holding Profound Medical Corp or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cytek Biosciences vs. Profound Medical Corp
Performance |
| Timeline |
| Cytek Biosciences |
| Profound Medical Corp |
Cytek Biosciences and Profound Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cytek Biosciences and Profound Medical
The main advantage of trading using opposite Cytek Biosciences and Profound Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytek Biosciences position performs unexpectedly, Profound 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 Profound Medical will offset losses from the drop in Profound Medical's long position.| Cytek Biosciences vs. Orthopediatrics Corp | Cytek Biosciences vs. Electromed | Cytek Biosciences vs. Pulmonx Corp | Cytek Biosciences vs. Rxsight |
| Profound Medical vs. Si Bone | Profound Medical vs. Sight Sciences | Profound Medical vs. Nevro Corp | Profound Medical vs. Paragon 28 |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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