Correlation Between Cytek Biosciences and Immuneering Corp

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

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

Diversification Opportunities for Cytek Biosciences and Immuneering Corp

0.23

Correlation Coefficient

Cytek Biosciences  Immuneering Corp

Modest diversification

The 3 months correlation between Cytek and Immuneering is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Immuneering Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuneering Corp 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 Immuneering Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immuneering Corp has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Immuneering Corp go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Immuneering Corp

Given the investment horizon of 90 days Cytek Biosciences is expected to under-perform the Immuneering Corp. But the stock apears to be less risky and, when comparing its historical volatility, Cytek Biosciences is 1.96 times less risky than Immuneering Corp. The stock trades about -0.03 of its potential returns per unit of risk. The Immuneering Corp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  138.00  in Immuneering Corp on April 20, 2025 and sell it today you would earn a total of  275.00  from holding Immuneering Corp or generate 199.28% 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.  Immuneering Corp

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.

Immuneering Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Immuneering Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Immuneering Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cytek Biosciences and Immuneering Corp

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

The idea behind Cytek Biosciences and Immuneering Corp 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.

Check out your portfolio center.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.