Correlation Between NeueHealth and Cytek Biosciences

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

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

Diversification Opportunities for NeueHealth and Cytek Biosciences

-0.15

Correlation Coefficient

NeueHealth  Cytek Biosciences

Good diversification

The 3 months correlation between NeueHealth and Cytek is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding NeueHealth and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and NeueHealth 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 NeueHealth 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 NeueHealth i.e., NeueHealth and Cytek Biosciences go up and down completely randomly.

Pair Corralation between NeueHealth and Cytek Biosciences

Given the investment horizon of 90 days NeueHealth is expected to under-perform the Cytek Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, NeueHealth is 6.52 times less risky than Cytek Biosciences. The stock trades about -0.03 of its potential returns per unit of risk. The Cytek Biosciences is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  302.00  in Cytek Biosciences on May 10, 2025 and sell it today you would earn a total of  109.00  from holding Cytek Biosciences or generate 36.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

NeueHealth  vs.  Cytek Biosciences

NeueHealth

Risk-Adjusted Performance

Weakest

Over the last 90 days NeueHealth has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, NeueHealth is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Cytek Biosciences

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cytek Biosciences are ranked lower than 10 (%) 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.

Pair Trading with NeueHealth and Cytek Biosciences

The main advantage of trading using opposite NeueHealth and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeueHealth 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 NeueHealth 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 Global Correlations module to find global opportunities by holding instruments from different markets.