Correlation Between Cytek Biosciences and Cerus

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

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

Diversification Opportunities for Cytek Biosciences and Cerus

0.44

Correlation Coefficient

Cytek Biosciences  Cerus

Very weak diversification

The 3 months correlation between Cytek and Cerus is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Cerus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cerus 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 Cerus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cerus has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Cerus go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Cerus

Given the investment horizon of 90 days Cytek Biosciences is expected to under-perform the Cerus. In addition to that, Cytek Biosciences is 1.36 times more volatile than Cerus. It trades about -0.04 of its total potential returns per unit of risk. Cerus is currently generating about 0.02 per unit of volatility. If you would invest  137.00  in Cerus on April 23, 2025 and sell it today you would earn a total of  1.00  from holding Cerus or generate 0.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Cytek Biosciences  vs.  Cerus

Cytek Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cytek Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward-looking signals remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Cerus

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cerus are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Cerus is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cytek Biosciences and Cerus

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

The idea behind Cytek Biosciences and Cerus 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.