Correlation Between Cytek Biosciences and Lifestance Health

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

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

Diversification Opportunities for Cytek Biosciences and Lifestance Health

-0.2

Correlation Coefficient

Cytek Biosciences  Lifestance Health

Good diversification

The 3 months correlation between Cytek and Lifestance is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Lifestance Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifestance Health 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 Lifestance Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifestance Health has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Lifestance Health go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Lifestance Health

Given the investment horizon of 90 days Cytek Biosciences is expected to generate 2.06 times more return on investment than Lifestance Health. However, Cytek Biosciences is 2.06 times more volatile than Lifestance Health Group. It trades about 0.04 of its potential returns per unit of risk. Lifestance Health Group is currently generating about -0.2 per unit of risk. If you would invest  373.00  in Cytek Biosciences on May 7, 2025 and sell it today you would earn a total of  11.00  from holding Cytek Biosciences or generate 2.95% 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.  Lifestance Health 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.

Lifestance Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lifestance Health Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Cytek Biosciences and Lifestance Health

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

The idea behind Cytek Biosciences and Lifestance Health 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.