Correlation Between Cytek Biosciences and Xtant Medical

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

Diversification Opportunities for Cytek Biosciences and Xtant Medical

-0.3

Correlation Coefficient

Cytek Biosciences  Xtant Medical

Very good diversification

The 3 months correlation between Cytek and Xtant is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and Xtant Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtant Medical Holdings 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 Xtant Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtant Medical Holdings has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and Xtant Medical go up and down completely randomly.

Pair Corralation between Cytek Biosciences and Xtant Medical

Given the investment horizon of 90 days Cytek Biosciences is expected to generate 0.96 times more return on investment than Xtant Medical. However, Cytek Biosciences is 1.05 times less risky than Xtant Medical. It trades about 0.17 of its potential returns per unit of risk. Xtant Medical Holdings is currently generating about 0.02 per unit of risk. If you would invest  267.00  in Cytek Biosciences on May 16, 2025 and sell it today you would earn a total of  141.00  from holding Cytek Biosciences or generate 52.81% 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.  Xtant Medical Holdings

Cytek Biosciences

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cytek Biosciences are ranked lower than 13 (%) 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.

Xtant Medical Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Xtant Medical Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Xtant Medical is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cytek Biosciences and Xtant Medical

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

The idea behind Cytek Biosciences and Xtant Medical Holdings 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.