Correlation Between Cytek Biosciences and Rapid Micro

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Can any of the company-specific risk be diversified away by investing in both Cytek Biosciences and Rapid Micro 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 Rapid Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cytek Biosciences and Rapid Micro Biosystems, you can compare the effects of market volatilities on Cytek Biosciences and Rapid Micro 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 Rapid Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytek Biosciences and Rapid Micro.

Diversification Opportunities for Cytek Biosciences and Rapid Micro

-0.48
  Correlation Coefficient

Very good diversification

The 3 months correlation between Cytek and Rapid is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Rapid Micro Biosystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rapid Micro Biosystems 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 Rapid Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rapid Micro Biosystems has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Rapid Micro go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Rapid Micro

Given the investment horizon of 90 days Cytek Biosciences is expected to under-perform the Rapid Micro. In addition to that, Cytek Biosciences is 1.02 times more volatile than Rapid Micro Biosystems. It trades about -0.03 of its total potential returns per unit of risk. Rapid Micro Biosystems is currently generating about 0.15 per unit of volatility. If you would invest  227.00  in Rapid Micro Biosystems on April 20, 2025 and sell it today you would earn a total of  114.00  from holding Rapid Micro Biosystems or generate 50.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Cytek Biosciences  vs.  Rapid Micro Biosystems

 Performance 
       Timeline  
Cytek Biosciences 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Cytek Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward-looking signals remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Rapid Micro Biosystems 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Rapid Micro Biosystems are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain forward indicators, Rapid Micro exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cytek Biosciences and Rapid Micro Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cytek Biosciences and Rapid Micro

The main advantage of trading using opposite Cytek Biosciences and Rapid Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytek Biosciences position performs unexpectedly, Rapid Micro 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 Rapid Micro will offset losses from the drop in Rapid Micro's long position.
The idea behind Cytek Biosciences and Rapid Micro Biosystems 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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