Correlation Between TROOPS and Cytek Biosciences

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

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

Diversification Opportunities for TROOPS and Cytek Biosciences

-0.02

Correlation Coefficient

TROOPS  Cytek Biosciences

Good diversification

The 3 months correlation between TROOPS and Cytek is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding TROOPS Inc and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and TROOPS 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 TROOPS Inc 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 TROOPS i.e., TROOPS and Cytek Biosciences go up and down completely randomly.

Pair Corralation between TROOPS and Cytek Biosciences

Given the investment horizon of 90 days TROOPS Inc is expected to generate 2.83 times more return on investment than Cytek Biosciences. However, TROOPS is 2.83 times more volatile than Cytek Biosciences. It trades about 0.08 of its potential returns per unit of risk. Cytek Biosciences is currently generating about 0.01 per unit of risk. If you would invest  56.00  in TROOPS Inc on May 4, 2025 and sell it today you would earn a total of  17.00  from holding TROOPS Inc or generate 30.36% return on investment over 90 days.

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

TROOPS Inc  vs.  Cytek Biosciences

TROOPS Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TROOPS Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, TROOPS displayed 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 TROOPS and Cytek Biosciences

The main advantage of trading using opposite TROOPS and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROOPS 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 TROOPS Inc 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..