Correlation Between Tactile Systems and Cytek Biosciences
Can any of the company-specific risk be diversified away by investing in both Tactile Systems 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 Tactile Systems and Cytek Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tactile Systems Technology and Cytek Biosciences, you can compare the effects of market volatilities on Tactile Systems 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 Tactile Systems with a short position of Cytek Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tactile Systems and Cytek Biosciences.
Diversification Opportunities for Tactile Systems and Cytek Biosciences
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tactile and Cytek is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Tactile Systems Technology and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and Tactile Systems 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 Tactile Systems Technology 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 Tactile Systems i.e., Tactile Systems and Cytek Biosciences go up and down completely randomly.
Pair Corralation between Tactile Systems and Cytek Biosciences
Given the investment horizon of 90 days Tactile Systems Technology is expected to under-perform the Cytek Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, Tactile Systems Technology is 1.03 times less risky than Cytek Biosciences. The stock trades about -0.33 of its potential returns per unit of risk. The Cytek Biosciences is currently generating about -0.32 of returns per unit of risk over similar time horizon. If you would invest 566.00 in Cytek Biosciences on December 1, 2024 and sell it today you would lose (117.00) from holding Cytek Biosciences or give up 20.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tactile Systems Technology vs. Cytek Biosciences
Performance |
| Timeline |
| Tactile Systems Tech |
| Cytek Biosciences |
Tactile Systems and Cytek Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tactile Systems and Cytek Biosciences
The main advantage of trading using opposite Tactile Systems and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tactile Systems 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.| Tactile Systems vs. CONMED | Tactile Systems vs. Treace Medical Concepts | Tactile Systems vs. SurModics | Tactile Systems vs. LivaNova PLC |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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