Correlation Between SurModics and Cytek Biosciences

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

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

Diversification Opportunities for SurModics and Cytek Biosciences

0.1

Correlation Coefficient

SurModics  Cytek Biosciences

Average diversification

The 3 months correlation between SurModics and Cytek is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SurModics and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and SurModics 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 SurModics 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 SurModics i.e., SurModics and Cytek Biosciences go up and down completely randomly.

Pair Corralation between SurModics and Cytek Biosciences

Given the investment horizon of 90 days SurModics is expected to generate 0.46 times more return on investment than Cytek Biosciences. However, SurModics is 2.18 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 0.01 per unit of risk. If you would invest  3,110  in SurModics on April 28, 2025 and sell it today you would earn a total of  490.00  from holding SurModics or generate 15.76% return on investment over 90 days.

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

SurModics  vs.  Cytek Biosciences

SurModics

Risk-Adjusted Performance

OK

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

Cytek Biosciences

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cytek Biosciences are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward-looking signals, Cytek Biosciences is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SurModics and Cytek Biosciences

The main advantage of trading using opposite SurModics and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SurModics 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 SurModics 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.

Check out your portfolio center.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.