Correlation Between Cytek Biosciences and Ensign

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

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

Diversification Opportunities for Cytek Biosciences and Ensign

-0.05

Correlation Coefficient

Cytek Biosciences  Ensign

Good diversification

The 3 months correlation between Cytek and Ensign is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and The Ensign Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ensign Group 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 Ensign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ensign Group has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Ensign go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Ensign

Given the investment horizon of 90 days Cytek Biosciences is expected to generate 1.38 times less return on investment than Ensign. In addition to that, Cytek Biosciences is 3.13 times more volatile than The Ensign Group. It trades about 0.03 of its total potential returns per unit of risk. The Ensign Group is currently generating about 0.15 per unit of volatility. If you would invest  13,622  in The Ensign Group on May 8, 2025 and sell it today you would earn a total of  2,196  from holding The Ensign Group or generate 16.12% return on investment over 90 days.

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

Cytek Biosciences  vs.  The Ensign Group

Cytek Biosciences

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cytek Biosciences are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward-looking signals, Cytek Biosciences may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Ensign Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Ensign Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Ensign reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cytek Biosciences and Ensign

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

The idea behind Cytek Biosciences and The Ensign Group 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.