Correlation Between Canlan Ice and Cytek Biosciences

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Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and Cytek Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and Cytek Biosciences, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of Cytek Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and Cytek Biosciences.

Diversification Opportunities for Canlan Ice and Cytek Biosciences

0.62
  Correlation Coefficient

Poor diversification

The 3 months correlation between Canlan and Cytek is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and Cytek Biosciences go up and down completely randomly.

Pair Corralation between Canlan Ice and Cytek Biosciences

Assuming the 90 days horizon Canlan Ice is expected to generate 3.4 times less return on investment than Cytek Biosciences. But when comparing it to its historical volatility, Canlan Ice Sports is 2.62 times less risky than Cytek Biosciences. It trades about 0.13 of its potential returns per unit of risk. Cytek Biosciences is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  267.00  in Cytek Biosciences on May 16, 2025 and sell it today you would earn a total of  141.00  from holding Cytek Biosciences or generate 52.81% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.41%
ValuesDaily Returns

Canlan Ice Sports  vs.  Cytek Biosciences

 Performance 
       Timeline  
Canlan Ice Sports 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Canlan Ice Sports are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Canlan Ice reported solid returns over the last few months and may actually be approaching a breakup point.
Cytek Biosciences 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cytek Biosciences are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward-looking signals, Cytek Biosciences sustained solid returns over the last few months and may actually be approaching a breakup point.

Canlan Ice and Cytek Biosciences Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Canlan Ice and Cytek Biosciences

The main advantage of trading using opposite Canlan Ice and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.
The idea behind Canlan Ice Sports and Cytek Biosciences pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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