Correlation Between Cytek Biosciences and CS Disco

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

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

Diversification Opportunities for Cytek Biosciences and CS Disco

-0.05

Correlation Coefficient

Cytek Biosciences  CS Disco

Good diversification

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

Pair Corralation between Cytek Biosciences and CS Disco

Given the investment horizon of 90 days Cytek Biosciences is expected to generate 1.2 times less return on investment than CS Disco. In addition to that, Cytek Biosciences is 2.12 times more volatile than CS Disco LLC. It trades about 0.03 of its total potential returns per unit of risk. CS Disco LLC is currently generating about 0.08 per unit of volatility. If you would invest  373.00  in CS Disco LLC on April 30, 2025 and sell it today you would earn a total of  40.00  from holding CS Disco LLC or generate 10.72% 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.  CS Disco LLC

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 August 2025.

CS Disco LLC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CS Disco LLC are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, CS Disco may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Cytek Biosciences and CS Disco

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

The idea behind Cytek Biosciences and CS Disco LLC 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .