Correlation Between Cytek Biosciences and Compugen

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

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

Diversification Opportunities for Cytek Biosciences and Compugen

0.21

Correlation Coefficient

Cytek Biosciences  Compugen

Modest diversification

The 3 months correlation between Cytek and Compugen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen 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 Compugen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compugen has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Compugen go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Compugen

Given the investment horizon of 90 days Cytek Biosciences is expected to generate 2.66 times less return on investment than Compugen. In addition to that, Cytek Biosciences is 1.17 times more volatile than Compugen. It trades about 0.01 of its total potential returns per unit of risk. Compugen is currently generating about 0.04 per unit of volatility. If you would invest  144.00  in Compugen on April 27, 2025 and sell it today you would earn a total of  9.00  from holding Compugen or generate 6.25% return on investment over 90 days.

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

Cytek Biosciences  vs.  Compugen

Cytek Biosciences

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cytek Biosciences are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward-looking signals, Cytek Biosciences is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Compugen

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Compugen are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Compugen may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Cytek Biosciences and Compugen

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

The idea behind Cytek Biosciences and Compugen 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 CEOs Directory module to screen CEOs from public companies around the world.