Correlation Between Cytek Biosciences and Sight Sciences

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

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

Diversification Opportunities for Cytek Biosciences and Sight Sciences

-0.25

Correlation Coefficient

Cytek Biosciences  Sight Sciences

Very good diversification

The 3 months correlation between Cytek and Sight is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Sight Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sight Sciences 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 Sight Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sight Sciences has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Sight Sciences go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Sight Sciences

Given the investment horizon of 90 days Cytek Biosciences is expected to generate 0.83 times more return on investment than Sight Sciences. However, Cytek Biosciences is 1.2 times less risky than Sight Sciences. It trades about 0.07 of its potential returns per unit of risk. Sight Sciences is currently generating about -0.19 per unit of risk. If you would invest  330.00  in Cytek Biosciences on April 15, 2025 and sell it today you would earn a total of  15.00  from holding Cytek Biosciences or generate 4.55% 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.  Sight Sciences

Cytek Biosciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cytek Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking signals, Cytek Biosciences is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Sight Sciences

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sight Sciences are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical indicators, Sight Sciences unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cytek Biosciences and Sight Sciences

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

The idea behind Cytek Biosciences and Sight Sciences 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.