Correlation Between Cytek Biosciences and MaxCyte

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

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

Diversification Opportunities for Cytek Biosciences and MaxCyte

-0.6

Correlation Coefficient

Cytek Biosciences  MaxCyte

Excellent diversification

The 3 months correlation between Cytek and MaxCyte is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and MaxCyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MaxCyte 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 MaxCyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MaxCyte has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and MaxCyte go up and down completely randomly.

Pair Corralation between Cytek Biosciences and MaxCyte

Given the investment horizon of 90 days Cytek Biosciences is expected to generate 0.87 times more return on investment than MaxCyte. However, Cytek Biosciences is 1.16 times less risky than MaxCyte. It trades about 0.16 of its potential returns per unit of risk. MaxCyte is currently generating about -0.13 per unit of risk. If you would invest  269.00  in Cytek Biosciences on May 18, 2025 and sell it today you would earn a total of  132.00  from holding Cytek Biosciences or generate 49.07% return on investment over 90 days.

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

Cytek Biosciences  vs.  MaxCyte

Cytek Biosciences

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cytek Biosciences are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward-looking signals, Cytek Biosciences sustained solid returns over the last few months and may actually be approaching a breakup point.

MaxCyte

Risk-Adjusted Performance

Weakest

Over the last 90 days MaxCyte has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental 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 MaxCyte

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

The idea behind Cytek Biosciences and MaxCyte 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.