Correlation Between Veracyte and Cytek Biosciences

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

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

Diversification Opportunities for Veracyte and Cytek Biosciences

0.33

Correlation Coefficient

Veracyte  Cytek Biosciences

Weak diversification

The 3 months correlation between Veracyte and Cytek is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Veracyte and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and Veracyte 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 Veracyte 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 Veracyte i.e., Veracyte and Cytek Biosciences go up and down completely randomly.

Pair Corralation between Veracyte and Cytek Biosciences

Given the investment horizon of 90 days Veracyte is expected to under-perform the Cytek Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, Veracyte is 2.2 times less risky than Cytek Biosciences. The stock trades about -0.14 of its potential returns per unit of risk. The Cytek Biosciences is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  386.00  in Cytek Biosciences on April 28, 2025 and sell it today you would lose (17.00) from holding Cytek Biosciences or give up 4.4% of portfolio value over 90 days.

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

Veracyte  vs.  Cytek Biosciences

Veracyte

Risk-Adjusted Performance

Very Weak

Over the last 90 days Veracyte has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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 Veracyte and Cytek Biosciences

The main advantage of trading using opposite Veracyte and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veracyte 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 Veracyte 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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.