Correlation Between Cytek Biosciences and Sight Sciences
Can any of the company-specific risk be diversified away by investing in both Cytek Biosciences and Sight Sciences 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 Sight Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cytek Biosciences and Sight Sciences, you can compare the effects of market volatilities on Cytek Biosciences and Sight Sciences 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 Sight Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytek Biosciences and Sight Sciences.
Diversification Opportunities for Cytek Biosciences and Sight Sciences
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cytek and Sight is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Sight Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sight Sciences 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 Sight Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sight Sciences has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Sight Sciences go up and down completely randomly.
Pair Corralation between Cytek Biosciences and Sight Sciences
Given the investment horizon of 90 days Cytek Biosciences is expected to under-perform the Sight Sciences. But the stock apears to be less risky and, when comparing its historical volatility, Cytek Biosciences is 1.64 times less risky than Sight Sciences. The stock trades about -0.02 of its potential returns per unit of risk. The Sight Sciences is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 955.00 in Sight Sciences on January 8, 2025 and sell it today you would lose (746.00) from holding Sight Sciences or give up 78.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cytek Biosciences vs. Sight Sciences
Performance |
| Timeline |
| Cytek Biosciences |
| Sight Sciences |
Cytek Biosciences and Sight Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cytek Biosciences and Sight Sciences
The main advantage of trading using opposite Cytek Biosciences and Sight Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytek Biosciences position performs unexpectedly, Sight Sciences 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 Sight Sciences will offset losses from the drop in Sight Sciences' long position.| Cytek Biosciences vs. Orthopediatrics Corp | Cytek Biosciences vs. Electromed | Cytek Biosciences vs. Pulmonx Corp | Cytek Biosciences vs. Rxsight |
| Sight Sciences vs. Si Bone | Sight Sciences vs. Rapid Micro Biosystems | Sight Sciences vs. Tactile Systems Technology | Sight Sciences vs. Pulmonx 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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