Correlation Between Inari Medical and Cytek Biosciences
Can any of the company-specific risk be diversified away by investing in both Inari 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 Inari 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 Inari Medical and Cytek Biosciences, you can compare the effects of market volatilities on Inari 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 Inari Medical with a short position of Cytek Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inari Medical and Cytek Biosciences.
Diversification Opportunities for Inari Medical and Cytek Biosciences
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inari and Cytek is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Inari Medical and Cytek Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytek Biosciences and Inari 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 Inari Medical 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 Inari Medical i.e., Inari Medical and Cytek Biosciences go up and down completely randomly.
Pair Corralation between Inari Medical and Cytek Biosciences
Given the investment horizon of 90 days Inari Medical is expected to generate 1.2 times more return on investment than Cytek Biosciences. However, Inari Medical is 1.2 times more volatile than Cytek Biosciences. It trades about 0.09 of its potential returns per unit of risk. Cytek Biosciences is currently generating about -0.07 per unit of risk. If you would invest 4,188 in Inari Medical on March 12, 2024 and sell it today you would earn a total of 679.00 from holding Inari Medical or generate 16.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Inari Medical vs. Cytek Biosciences
Performance |
Timeline |
Inari Medical |
Cytek Biosciences |
Inari Medical and Cytek Biosciences Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Inari Medical and Cytek Biosciences
The main advantage of trading using opposite Inari Medical and Cytek Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inari 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.Inari Medical vs. Heart Test Laboratories | Inari Medical vs. Inspira Technologies Oxy | Inari Medical vs. TC BioPharm plc | Inari Medical vs. bioAffinity Technologies Warrant |
Cytek Biosciences vs. Inari Medical | Cytek Biosciences vs. CONMED | Cytek Biosciences vs. Glaukos Corp | Cytek Biosciences vs. Nevro Corp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |