Correlation Between Orthofix Medical and Cytek Biosciences

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

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

Diversification Opportunities for Orthofix Medical and Cytek Biosciences

0.34

Correlation Coefficient

Orthofix Medical  Cytek Biosciences

Weak diversification

The 3 months correlation between Orthofix and Cytek is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Orthofix Medical and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and Orthofix Medical 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 Orthofix Medical 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 Orthofix Medical i.e., Orthofix Medical and Cytek Biosciences go up and down completely randomly.

Pair Corralation between Orthofix Medical and Cytek Biosciences

Given the investment horizon of 90 days Orthofix Medical is expected to generate 2.43 times less return on investment than Cytek Biosciences. But when comparing it to its historical volatility, Orthofix Medical is 1.59 times less risky than Cytek Biosciences. It trades about 0.11 of its potential returns per unit of risk. Cytek Biosciences is currently generating about 0.16 of returns per unit of risk over similar time horizon. 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

Orthofix Medical  vs.  Cytek Biosciences

Orthofix Medical

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Orthofix Medical are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady forward indicators, Orthofix Medical showed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Orthofix Medical and Cytek Biosciences

The main advantage of trading using opposite Orthofix Medical and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orthofix Medical 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 Orthofix Medical 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.