Correlation Between Cytek Biosciences and P3 Health

Can any of the company-specific risk be diversified away by investing in both Cytek Biosciences and P3 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 P3 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 P3 Health Partners, you can compare the effects of market volatilities on Cytek Biosciences and P3 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 P3 Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytek Biosciences and P3 Health.

Diversification Opportunities for Cytek Biosciences and P3 Health

-0.06

Correlation Coefficient

Cytek Biosciences  P3 Health

Good diversification

The 3 months correlation between Cytek and PIII is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and P3 Health Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on P3 Health Partners 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 P3 Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of P3 Health Partners has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and P3 Health go up and down completely randomly.

Pair Corralation between Cytek Biosciences and P3 Health

Given the investment horizon of 90 days Cytek Biosciences is expected to generate 0.89 times more return on investment than P3 Health. However, Cytek Biosciences is 1.13 times less risky than P3 Health. It trades about 0.2 of its potential returns per unit of risk. P3 Health Partners is currently generating about 0.02 per unit of risk. If you would invest  257.00  in Cytek Biosciences on May 24, 2025 and sell it today you would earn a total of  160.00  from holding Cytek Biosciences or generate 62.26% 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.  P3 Health Partners

Cytek Biosciences

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cytek Biosciences are ranked lower than 15 (%) 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.

P3 Health Partners

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in P3 Health Partners are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, P3 Health may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Cytek Biosciences and P3 Health

The main advantage of trading using opposite Cytek Biosciences and P3 Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytek Biosciences position performs unexpectedly, P3 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 P3 Health will offset losses from the drop in P3 Health's long position.

The idea behind Cytek Biosciences and P3 Health Partners 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.