Correlation Between Cytek Biosciences and Treace Medical

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

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

Diversification Opportunities for Cytek Biosciences and Treace Medical

0.12

Correlation Coefficient

Cytek Biosciences  Treace Medical

Average diversification

The 3 months correlation between Cytek and Treace is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Treace Medical Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treace Medical Concepts 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 Treace Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treace Medical Concepts has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Treace Medical go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Treace Medical

Given the investment horizon of 90 days Cytek Biosciences is expected to generate 1.52 times more return on investment than Treace Medical. However, Cytek Biosciences is 1.52 times more volatile than Treace Medical Concepts. It trades about 0.16 of its potential returns per unit of risk. Treace Medical Concepts is currently generating about 0.03 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 Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cytek Biosciences  vs.  Treace Medical Concepts

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.

Treace Medical Concepts

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Treace Medical Concepts are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Treace Medical is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Cytek Biosciences and Treace Medical

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

The idea behind Cytek Biosciences and Treace Medical Concepts 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.