Correlation Between Cytek Biosciences and Veracyte

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

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

Diversification Opportunities for Cytek Biosciences and Veracyte

0.37

Correlation Coefficient

Cytek Biosciences  Veracyte

Weak diversification

The 3 months correlation between Cytek and Veracyte is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Veracyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veracyte 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 Veracyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veracyte has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Veracyte go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Veracyte

Given the investment horizon of 90 days Cytek Biosciences is expected to generate 2.31 times more return on investment than Veracyte. However, Cytek Biosciences is 2.31 times more volatile than Veracyte. It trades about -0.02 of its potential returns per unit of risk. Veracyte is currently generating about -0.2 per unit of risk. If you would invest  386.00  in Cytek Biosciences on April 26, 2025 and sell it today you would lose (53.00) from holding Cytek Biosciences or give up 13.73% of portfolio value over 90 days.

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

Cytek Biosciences  vs.  Veracyte

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 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.

Veracyte

Risk-Adjusted Performance

Very Weak

Over the last 90 days Veracyte 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 basic indicators remain comparatively stable which may send shares a bit higher in August 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 Veracyte

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

The idea behind Cytek Biosciences and Veracyte 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.