Correlation Between Enovis Corp and Cytek Biosciences
Can any of the company-specific risk be diversified away by investing in both Enovis Corp and Cytek Biosciences 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 Enovis Corp and Cytek Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enovis Corp and Cytek Biosciences, you can compare the effects of market volatilities on Enovis Corp and Cytek Biosciences 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 Enovis Corp with a short position of Cytek Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enovis Corp and Cytek Biosciences.
Diversification Opportunities for Enovis Corp and Cytek Biosciences
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Enovis and Cytek is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Enovis Corp and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and Enovis Corp 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 Enovis Corp are associated (or correlated) with Cytek Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytek Biosciences has no effect on the direction of Enovis Corp i.e., Enovis Corp and Cytek Biosciences go up and down completely randomly.
Pair Corralation between Enovis Corp and Cytek Biosciences
Given the investment horizon of 90 days Enovis Corp is expected to generate 1.95 times less return on investment than Cytek Biosciences. But when comparing it to its historical volatility, Enovis Corp is 3.45 times less risky than Cytek Biosciences. It trades about 0.34 of its potential returns per unit of risk. Cytek Biosciences is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 495.00 in Cytek Biosciences on September 1, 2024 and sell it today you would earn a total of 158.00 from holding Cytek Biosciences or generate 31.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enovis Corp vs. Cytek Biosciences
Performance |
| Timeline |
| Enovis Corp |
| Cytek Biosciences |
Enovis Corp and Cytek Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enovis Corp and Cytek Biosciences
The main advantage of trading using opposite Enovis Corp and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enovis Corp position performs unexpectedly, Cytek Biosciences 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 Cytek Biosciences will offset losses from the drop in Cytek Biosciences' long position.| Enovis Corp vs. Helios Technologies | Enovis Corp vs. Enpro Industries | Enovis Corp vs. Omega Flex | Enovis Corp vs. Luxfer Holdings PLC |
| Cytek Biosciences vs. Profound Medical Corp | Cytek Biosciences vs. Si Bone | Cytek Biosciences vs. Nevro Corp | Cytek Biosciences 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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