Correlation Between Cytek Biosciences and Academy Sports

Can any of the company-specific risk be diversified away by investing in both Cytek Biosciences and Academy Sports 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 Cytek Biosciences and Academy Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cytek Biosciences and Academy Sports Outdoors, you can compare the effects of market volatilities on Cytek Biosciences and Academy Sports 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 Cytek Biosciences with a short position of Academy Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytek Biosciences and Academy Sports.

Diversification Opportunities for Cytek Biosciences and Academy Sports

0.62

Correlation Coefficient

Cytek Biosciences  Academy Sports

Poor diversification

The 3 months correlation between Cytek and Academy is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Academy Sports Outdoors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Academy Sports Outdoors and Cytek Biosciences 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 Cytek Biosciences are associated (or correlated) with Academy Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Academy Sports Outdoors has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Academy Sports go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Academy Sports

Given the investment horizon of 90 days Cytek Biosciences is expected to generate 1.72 times more return on investment than Academy Sports. However, Cytek Biosciences is 1.72 times more volatile than Academy Sports Outdoors. It trades about 0.17 of its potential returns per unit of risk. Academy Sports Outdoors is currently generating about 0.13 per unit of risk. 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 Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Cytek Biosciences  vs.  Academy Sports Outdoors

Cytek Biosciences

Risk-Adjusted Performance

Good

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.

Academy Sports Outdoors

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Academy Sports Outdoors are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Academy Sports displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cytek Biosciences and Academy Sports

The main advantage of trading using opposite Cytek Biosciences and Academy Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytek Biosciences position performs unexpectedly, Academy Sports 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 Academy Sports will offset losses from the drop in Academy Sports' long position.

The idea behind Cytek Biosciences and Academy Sports Outdoors 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.