Correlation Between Cytek Biosciences and IDEXX Laboratories
Can any of the company-specific risk be diversified away by investing in both Cytek Biosciences and IDEXX Laboratories 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 Cytek Biosciences and IDEXX Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cytek Biosciences and IDEXX Laboratories, you can compare the effects of market volatilities on Cytek Biosciences and IDEXX Laboratories 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 Cytek Biosciences with a short position of IDEXX Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytek Biosciences and IDEXX Laboratories.
Diversification Opportunities for Cytek Biosciences and IDEXX Laboratories
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cytek and IDEXX is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Cytek Biosciences and IDEXX Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDEXX Laboratories and Cytek Biosciences 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 Cytek Biosciences are associated (or correlated) with IDEXX Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDEXX Laboratories has no effect on the direction of Cytek Biosciences i.e., Cytek Biosciences and IDEXX Laboratories go up and down completely randomly.
Pair Corralation between Cytek Biosciences and IDEXX Laboratories
Given the investment horizon of 90 days Cytek Biosciences is expected to generate 2.57 times more return on investment than IDEXX Laboratories. However, Cytek Biosciences is 2.57 times more volatile than IDEXX Laboratories. It trades about 0.01 of its potential returns per unit of risk. IDEXX Laboratories is currently generating about -0.1 per unit of risk. If you would invest 403.00 in Cytek Biosciences on June 9, 2025 and sell it today you would lose (1.00) from holding Cytek Biosciences or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cytek Biosciences vs. IDEXX Laboratories
Performance |
| Timeline |
| Cytek Biosciences |
| IDEXX Laboratories |
Cytek Biosciences and IDEXX Laboratories Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cytek Biosciences and IDEXX Laboratories
The main advantage of trading using opposite Cytek Biosciences and IDEXX Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytek Biosciences position performs unexpectedly, IDEXX Laboratories 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 IDEXX Laboratories will offset losses from the drop in IDEXX Laboratories' long position.| Cytek Biosciences vs. MaxCyte | Cytek Biosciences vs. Sight Sciences | Cytek Biosciences vs. CVRx Inc | Cytek Biosciences vs. Neuropace |
| IDEXX Laboratories vs. Waters | IDEXX Laboratories vs. IQVIA Holdings | IDEXX Laboratories vs. Charles River Laboratories | IDEXX Laboratories vs. Revvity |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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