Correlation Between Neogen and Cytek Biosciences

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

Diversification Opportunities for Neogen and Cytek Biosciences

-0.61
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Neogen and Cytek is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Neogen and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and Neogen 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 Neogen are associated (or correlated) with Cytek Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytek Biosciences has no effect on the direction of Neogen i.e., Neogen and Cytek Biosciences go up and down completely randomly.

Pair Corralation between Neogen and Cytek Biosciences

Given the investment horizon of 90 days Neogen is expected to generate 0.85 times more return on investment than Cytek Biosciences. However, Neogen is 1.18 times less risky than Cytek Biosciences. It trades about 0.01 of its potential returns per unit of risk. Cytek Biosciences is currently generating about -0.04 per unit of risk. If you would invest  492.00  in Neogen on April 23, 2025 and sell it today you would lose (14.00) from holding Neogen or give up 2.85% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Neogen  vs.  Cytek Biosciences

 Performance 
       Timeline  
Neogen 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Neogen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Neogen is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
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.

Neogen and Cytek Biosciences Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Neogen and Cytek Biosciences

The main advantage of trading using opposite Neogen and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogen position performs unexpectedly, Cytek Biosciences 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 Cytek Biosciences will offset losses from the drop in Cytek Biosciences' long position.
The idea behind Neogen and Cytek Biosciences 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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