Correlation Between Medtronic PLC and Cytek Biosciences
Can any of the company-specific risk be diversified away by investing in both Medtronic PLC 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 Medtronic PLC and Cytek Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medtronic PLC and Cytek Biosciences, you can compare the effects of market volatilities on Medtronic PLC 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 Medtronic PLC with a short position of Cytek Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medtronic PLC and Cytek Biosciences.
Diversification Opportunities for Medtronic PLC and Cytek Biosciences
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Medtronic and Cytek is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Medtronic PLC and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and Medtronic PLC 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 Medtronic PLC 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 Medtronic PLC i.e., Medtronic PLC and Cytek Biosciences go up and down completely randomly.
Pair Corralation between Medtronic PLC and Cytek Biosciences
Considering the 90-day investment horizon Medtronic PLC is expected to generate 0.25 times more return on investment than Cytek Biosciences. However, Medtronic PLC is 3.99 times less risky than Cytek Biosciences. It trades about 0.05 of its potential returns per unit of risk. Cytek Biosciences is currently generating about 0.01 per unit of risk. If you would invest 7,675 in Medtronic PLC on September 3, 2024 and sell it today you would earn a total of 979.00 from holding Medtronic PLC or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medtronic PLC vs. Cytek Biosciences
Performance |
| Timeline |
| Medtronic PLC |
| Cytek Biosciences |
Medtronic PLC and Cytek Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medtronic PLC and Cytek Biosciences
The main advantage of trading using opposite Medtronic PLC and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medtronic PLC 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.| Medtronic PLC vs. Tandem Diabetes Care | Medtronic PLC vs. Inspire Medical Systems | Medtronic PLC vs. Penumbra | Medtronic PLC vs. Insulet |
| Cytek Biosciences vs. Orthopediatrics Corp | Cytek Biosciences vs. Electromed | Cytek Biosciences vs. Pulmonx Corp | Cytek Biosciences vs. Rxsight |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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