Correlation Between Citigroup and Cytek Biosciences
Can any of the company-specific risk be diversified away by investing in both Citigroup 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 Citigroup and Cytek Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Cytek Biosciences, you can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of Cytek Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Cytek Biosciences.
Diversification Opportunities for Citigroup and Cytek Biosciences
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Cytek is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and Citigroup 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 Citigroup 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 Citigroup i.e., Citigroup and Cytek Biosciences go up and down completely randomly.
Pair Corralation between Citigroup and Cytek Biosciences
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.28 times more return on investment than Cytek Biosciences. However, Citigroup is 3.62 times less risky than Cytek Biosciences. It trades about 0.38 of its potential returns per unit of risk. Cytek Biosciences is currently generating about 0.01 per unit of risk. If you would invest 6,774 in Citigroup on April 28, 2025 and sell it today you would earn a total of 2,833 from holding Citigroup or generate 41.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. Cytek Biosciences
Performance |
Timeline |
Citigroup |
Cytek Biosciences |
Citigroup and Cytek Biosciences Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Cytek Biosciences
The main advantage of trading using opposite Citigroup and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup 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.Citigroup vs. Bank of America | Citigroup vs. Wells Fargo | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Toronto Dominion Bank |
Cytek Biosciences vs. MaxCyte | Cytek Biosciences vs. Sight Sciences | Cytek Biosciences vs. CVRx Inc | Cytek Biosciences vs. Neuropace |
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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