Correlation Between Cytek Biosciences and Compass Pathways

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

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

Diversification Opportunities for Cytek Biosciences and Compass Pathways

-0.41

Correlation Coefficient

Cytek Biosciences  Compass Pathways

Very good diversification

The 3 months correlation between Cytek and Compass is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Compass Pathways Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compass Pathways Plc 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 Compass Pathways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compass Pathways Plc has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Compass Pathways go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Compass Pathways

Given the investment horizon of 90 days Cytek Biosciences is expected to generate 0.94 times more return on investment than Compass Pathways. However, Cytek Biosciences is 1.06 times less risky than Compass Pathways. It trades about 0.17 of its potential returns per unit of risk. Compass Pathways Plc is currently generating about 0.07 per unit of risk. If you would invest  338.00  in Cytek Biosciences on September 29, 2025 and sell it today you would earn a total of  172.00  from holding Cytek Biosciences or generate 50.89% return on investment over 90 days.

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

Cytek Biosciences  vs.  Compass Pathways Plc

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 weak forward-looking signals, Cytek Biosciences sustained solid returns over the last few months and may actually be approaching a breakup point.

Compass Pathways Plc

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Compass Pathways Plc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Compass Pathways unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cytek Biosciences and Compass Pathways

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

The idea behind Cytek Biosciences and Compass Pathways Plc 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.