Correlation Between Treace Medical and Cytek Biosciences

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

Diversification Opportunities for Treace Medical and Cytek Biosciences

-0.14

Correlation Coefficient

Treace Medical  Cytek Biosciences

Good diversification

The 3 months correlation between Treace and Cytek is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Treace Medical Concepts and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and Treace 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 Treace Medical Concepts 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 Treace Medical i.e., Treace Medical and Cytek Biosciences go up and down completely randomly.

Pair Corralation between Treace Medical and Cytek Biosciences

Given the investment horizon of 90 days Treace Medical is expected to generate 9.04 times less return on investment than Cytek Biosciences. But when comparing it to its historical volatility, Treace Medical Concepts is 1.52 times less risky than Cytek Biosciences. It trades about 0.03 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 Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Treace Medical Concepts  vs.  Cytek Biosciences

Treace Medical Concepts

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Treace Medical Concepts are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Treace Medical is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

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 Treace Medical and Cytek Biosciences

The main advantage of trading using opposite Treace Medical and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Treace 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 Treace Medical Concepts 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.