Correlation Between Cytek Biosciences and Inogen

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

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

Diversification Opportunities for Cytek Biosciences and Inogen

0.69

Correlation Coefficient

Cytek Biosciences  Inogen

Poor diversification

The 3 months correlation between Cytek and Inogen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc 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 Inogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inogen Inc has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Inogen go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Inogen

Given the investment horizon of 90 days Cytek Biosciences is expected to generate 1.56 times more return on investment than Inogen. However, Cytek Biosciences is 1.56 times more volatile than Inogen Inc. It trades about 0.01 of its potential returns per unit of risk. Inogen Inc is currently generating about -0.01 per unit of risk. If you would invest  386.00  in Cytek Biosciences on April 28, 2025 and sell it today you would lose (17.00) from holding Cytek Biosciences or give up 4.4% of portfolio value over 90 days.

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

Cytek Biosciences  vs.  Inogen Inc

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.

Inogen Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inogen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Inogen is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Cytek Biosciences and Inogen

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

The idea behind Cytek Biosciences and Inogen Inc 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.