Correlation Between Glaukos Corp and Cytek Biosciences
Can any of the company-specific risk be diversified away by investing in both Glaukos 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 Glaukos 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 Glaukos Corp and Cytek Biosciences, you can compare the effects of market volatilities on Glaukos 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 Glaukos Corp with a short position of Cytek Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glaukos Corp and Cytek Biosciences.
Diversification Opportunities for Glaukos Corp and Cytek Biosciences
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glaukos and Cytek is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Glaukos Corp and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and Glaukos 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 Glaukos 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 Glaukos Corp i.e., Glaukos Corp and Cytek Biosciences go up and down completely randomly.
Pair Corralation between Glaukos Corp and Cytek Biosciences
Given the investment horizon of 90 days Glaukos Corp is expected to generate 0.62 times more return on investment than Cytek Biosciences. However, Glaukos Corp is 1.62 times less risky than Cytek Biosciences. It trades about -0.09 of its potential returns per unit of risk. Cytek Biosciences is currently generating about -0.07 per unit of risk. If you would invest 14,304 in Glaukos Corp on September 12, 2024 and sell it today you would lose (666.00) from holding Glaukos Corp or give up 4.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glaukos Corp vs. Cytek Biosciences
Performance |
| Timeline |
| Glaukos Corp |
| Cytek Biosciences |
Glaukos Corp and Cytek Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glaukos Corp and Cytek Biosciences
The main advantage of trading using opposite Glaukos Corp and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glaukos 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.| Glaukos Corp vs. Heart Test Laboratories | Glaukos Corp vs. Inspira Technologies Oxy | Glaukos Corp vs. TC BioPharm plc | Glaukos Corp vs. bioAffinity Technologies Warrant |
| Cytek Biosciences vs. Inari Medical | Cytek Biosciences vs. CONMED | Cytek Biosciences vs. Glaukos Corp | Cytek Biosciences vs. Nevro 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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