Correlation Between Paragon 28 and Cytek Biosciences
Can any of the company-specific risk be diversified away by investing in both Paragon 28 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 Paragon 28 and Cytek Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paragon 28 and Cytek Biosciences, you can compare the effects of market volatilities on Paragon 28 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 Paragon 28 with a short position of Cytek Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paragon 28 and Cytek Biosciences.
Diversification Opportunities for Paragon 28 and Cytek Biosciences
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Paragon and Cytek is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Paragon 28 and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and Paragon 28 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 Paragon 28 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 Paragon 28 i.e., Paragon 28 and Cytek Biosciences go up and down completely randomly.
Pair Corralation between Paragon 28 and Cytek Biosciences
Considering the 90-day investment horizon Paragon 28 is expected to generate 1.06 times more return on investment than Cytek Biosciences. However, Paragon 28 is 1.06 times more volatile than Cytek Biosciences. It trades about 0.39 of its potential returns per unit of risk. Cytek Biosciences is currently generating about 0.19 per unit of risk. If you would invest 530.00 in Paragon 28 on September 1, 2024 and sell it today you would earn a total of 501.00 from holding Paragon 28 or generate 94.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paragon 28 vs. Cytek Biosciences
Performance |
| Timeline |
| Paragon 28 |
| Cytek Biosciences |
Paragon 28 and Cytek Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paragon 28 and Cytek Biosciences
The main advantage of trading using opposite Paragon 28 and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paragon 28 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.| Paragon 28 vs. Pulmonx Corp | Paragon 28 vs. Iradimed Co | Paragon 28 vs. Orthofix Medical | Paragon 28 vs. Neuropace |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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